Stocks fall as Wall Street weighs job loss data, Microsoft drops
Stocks pulled back on Wednesday, bogged down by Microsoft, as traders contemplated the U.S. economic outlook.
The S&P 500 shed 0.2%, while the Nasdaq Composite lost 0.3%. The Dow Jones Industrial Average dipped 18 points.
Microsoft shares fell after The Information reported it was cutting software sales quotas tied to artificial intelligence. The stock was last down 2%.
Other names linked to the AI trade, including chipmakers Nvidia and Broadcom, fell in sympathy with Microsoft. AI software firm Palantir Technologies also came under pressure.
Stock futures had remained in the green earlier in the day after payrolls processor ADP reported that private payrolls surprisingly declined by 32,000 in November. Economists polled by Dow Jones had expected an increase of 40,000 for the month. Despite the tough reading on the economy, traders were likely betting that the private job losses could clinch a Federal Reserve rate cut at its last meeting of the year next week.
Traders are optimistic about corporate earnings results and are looking ahead to the Fed’s interest rate decision on Dec. 10. Markets are pricing a roughly 89% chance of a cut during the upcoming meeting, which is much higher than the odds from mid-November, according to the CME FedWatch tool.
Source : Cnbc.com
