The S&P 500 was little changed on Wednesday, as fresh jobs data exacerbated concerns about the economy and appeared to distract from hopes of a compromise on President Donald Trump's controversial tariffs.
The S&P 500 rose 0.2%, while the Nasdaq Composite edged up 0.1%. The Dow Jones Industrial Average jumped 162 points, or 0.4%, after dropping more than 1,300 points over the past two sessions.
Commerce Secretary Howard Lutnick said late Tuesday that he expected an announcement on a deal with Canada and Mexico. Lutnick added earlier Wednesday that Trump was considering which sectors of the economy to give tax breaks to.
The update boosted stocks such as automakers that have been hit hard by concerns about rising material costs. General Motors and Ford rose more than 3% and 2%, respectively. Elsewhere, luxury apparel maker Canada Goose jumped more than 2%. But despite investor appetite for a resolution to the tariffs, Trump said the "little disruption" of his levies on the two countries — along with China, which is also facing new import duties — didn't matter during a Tuesday night speech to Congress.
Stocks also felt downward pressure Wednesday morning after the ADP private payrolls report showed far weaker job growth in February than economists surveyed by Dow Jones had predicted. The release added to a growing pile of data points that have raised concerns about the U.S. economy. Trump's tariffs — and subsequent announcements of retaliatory plans from China, Mexico and Canada — have roiled markets this week. Even without Wednesday's big drop, all three major indexes are down more than 2% for the week. What's more, the tech-heavy Nasdaq is trading within striking distance of correction territory, a term referring to an index that has fallen 10% from a recent peak. The S&P 500 on Tuesday officially erased its gains since closing on Election Day in November.
"The thing we've emphasized over and over again is that Trump is creating uncertainty," said Michael Green, chief strategist at Simplify Asset Management. "We are now at a point where one tweet or one release of information can significantly change the interpretation of what the market looks like."(Newsmaker23)
Source: CNBC
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