Stocks Hit New Highs Amidst Jobs Report Uncertainty
Stocks indeed reached new highs on Wednesday, with the S&P 500 and Dow Jones industrial average both setting records. However, the next jobs report from the Labor Department may be delayed due to the U.S. government shutdown.
Peloton Interactive's stock dropped 3.7% after unveiling new AI and computer vision systems, along with other cross-training equipment. Nike, on the other hand, rose 6.4% after surpassing analysts' profit expectations in the latest quarter. Corteva's stock sank 9.1% following an announcement to split into two companies, each with its own stock.
Lithium Americas' stock jumped 23.3% after the U.S. government agreed to let it draw from a $2.26-billion loan and will take an ownership stake in the company. The Nasdaq composite rose 0.4%, while the S&P 500 climbed 0.3% to top its prior all-time high, and the Dow added 43 points, or 0.1%, to its own record. Employers outside the government cut 32,000 more jobs than they added, according to the ADP Research Institute's survey.
Carl Weinberg, Chief Economist of High Frequency Economics, forecasted that if the U.S. labor market does not show signs of improvement, the Federal Reserve is likely to lean toward interest rate cuts. However, uncertainty remains due to potential delays in the September employment report caused by a partial government shutdown. Treasury yields dropped after a report suggested hiring may have been much weaker than expected in September.
Despite record highs in stocks, uncertainty looms due to potential delays in the jobs report and mixed signals from the labor market. Investors await further developments as the U.S. government shutdown continues.
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