U.S. stocks were flat on Wednesday after the S&P 500 closed at a record high as investors watched fresh economic data and Federal Reserve minutes for indications of rate cuts in a holiday-shortened session.
The S&P 500 Index (^GSPC) traded flat after the benchmark index ended Tuesday above 5,500 for the first time. The Nasdaq Composite, a technology-heavy index (^IXIQUE) was also little changed, while the Dow Jones Industrial Average (^DJI) increased slightly by 0.2%.
Stocks were down before the early close (1 p.m. ET) of trading on Wednesday and also before the stock market closed Thursday to mark the Independence Day holiday.
S&P 500 and Nasdaq Composite hit new closing records after Jerome Powell’s statement praised the progress made in the fight against inflation. That has bolstered hopes for an interest rate cut, even as the Fed chairman once again signaled a lack of urgency to act. Traders are pricing in a 65% chance of a September rate cut, according to The CME FedWatch Tool.
Meanwhile, job creation slowed for a third straight month, with the United States adding only 150,000 new jobs in the private sector In June, wages fell, below the 165,000 expected by Wall Street. Wage increases also slowed, both for workers who kept their jobs and for those who changed jobs.
The data arrives just before the June key jobs report Data on services activity and factory orders will also be on the agenda, to be watched for further signs of economic slowdown that could prompt policymakers to act.
In business, Paramount Global (FOR) Shares rose about 8% in early trading following the reports Skydance Media has reached an agreement giving it a majority stake in the entertainment giant.
Meanwhile, Tesla (TSLA) Shares rose more than 2% after rising 10% Tuesday after the electric vehicle maker reported Deliveries exceed Wall Street estimates.
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