Market Update: Stocks Reverse Gains as Investors Weigh Jobs Data and Nvidia’s AI Ambitions
The US stock market took a step back on Tuesday, as investors digested new jobs data and Nvidia’s bold plans for artificial intelligence. The S&P 500 fell 0.3%, while the tech-heavy Nasdaq Composite lost 0.7%. The Dow Jones Industrial Average dropped 0.1%.
Jobs Market Remains Resilient
New data from the Bureau of Labor Statistics showed that job openings rose to 8.1 million in November, surpassing economists’ expectations of 7.74 million. This marks an increase from the 7.84 million openings seen in October. The quits rate, a key indicator of worker confidence, fell to 1.9% from 2.1% in October.
Nvidia’s AI Push Falters
Nvidia shares reversed gains to fall over 2% after hitting a record high close. CEO Jensen Huang’s keynote at the Consumer Electronics Show (CES) on Monday revealed a new AI superchip, among other planned products. Despite Nvidia’s decline, other chip stocks extended their rally, with Micron Technology up about 4%.
Fed Officials Signal Gradual Approach
In recent days, Federal Reserve officials have hinted at a more gradual approach to interest rate cuts, given the resilience of the jobs market and persistent inflation. This has led to increased scrutiny of the labor market slowdown and its implications for monetary policy.
Dollar Under Pressure
The dollar continued to come under pressure, sinking to one-week lows. Meanwhile, investors are watching for clarity on Donald Trump’s tariff agenda, with the president-elect denying reports of more targeted measures.
Earnings and Economic News
Cal-Maine Foods (CALM) is set to release earnings, while the ISM Services Index for December is also due out. Catch up on some of the top stories you may have missed, including CATL’s dominance in the EV cell market and Disney’s acquisition of Fubo.
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