U.S. Stocks Reach New Highs
U.S. stock markets saw an uptick on Wednesday, achieving another record high. The S&P 500 climbed by 0.5%, marking its third record in the last four days, while the Dow Jones Industrial Average decreased by 10 points (less than 0.1%), and the Nasdaq composite rose by 0.9%.
Tesla Boosts Market Performance
Tesla contributed positively to market gains, rising 5% after reporting deliveries of nearly 374,000 Model 3 and Model Y vehicles last quarter, surpassing analyst expectations. However, overall sales declined by 13% compared to the previous year, raising concerns about CEO Elon Musk’s political activities potentially alienating customers.
Constellation Brands’ Mixed Results
Constellation Brands experienced a 4.5% increase in its stock value, despite reporting weaker-than-expected quarterly profits. The company noted a slowdown in growth within the construction sector and other calorie-heavy industries, which impacts beer demand. Nevertheless, they maintained their financial projections for the upcoming year.
Struggles for Centene
In contrast, Centene faced a dramatic 40.4% stock drop after withdrawing its profit forecasts for the year, attributing it to worsened health trends in many states it serves. This was the sharpest decline for Centene since its introduction to the market in 2001.
Market Overview and Bond Yields
Overall, the S&P 500 increased by 29.41 points to reach 6,227.42. The Dow Jones edged down by 10.52 to 44,484.42, while the Nasdaq rose 190.24 to 20,393.13. In the bond market, Treasury yields varied ahead of a key jobs report expected Thursday, with predictions indicating that hiring had slowed.
Job Market Concerns and Economic Indicators
Worries arose from a weak report released Wednesday, indicating that U.S. employers cut 33,000 jobs last month. Although layoffs remain uncommon, hesitation in hiring contributed to this downturn. The upcoming government jobs report’s correlation with the ADP data remains uncertain, and fears of President Trump’s tariffs potentially freezing hiring persist.
International Market Reactions and Fed Outlook
In global markets, responses varied as the deadline for Trump’s tariffs looms. France’s CAC 40 edged up by 1%, and Hong Kong’s Hang Seng gained 0.6%, while Japan’s Nikkei 225 and South Korea’s Kospi saw declines of 0.6% and 0.5%, respectively. Analysts suggest that unforeseen job market weakness could prompt the Federal Reserve to lower interest rates, with President Trump pressing for quicker action.
Choe writes for the Associated Press.
