Major U.S. indices finished mixed on Wednesday (Thursday AEDT), closing with a modest gain as investors navigated persistent inflation concerns highlighted in the Federal Reserve’s December meeting minutes.
The Dow Jones Industrial Average rose by 106.8 points, or 0.3% to 42,635.2, the S&P 500 advanced by 9.2 points or 0.2% to 5,918.3, while the Nasdaq Composite slipped 10.8 points or 0.1% to 19,478.9. All three indices remain on track for their second consecutive weekly loss.
Minutes from the Federal Open Market Committee (FOMC) meeting revealed that nearly all participants viewed the risks of inflation remaining elevated as having increased. This added to market apprehension that fewer rate cuts may materialise in 2024 than previously anticipated.
“Participants indicated that the Committee was at or near the point at which it would be appropriate to slow the pace of policy easing,” the minutes stated, reflecting a cautious stance on monetary policy amid economic uncertainty.
Among data releases, the Automatic Data Processing (ADP) Private sector employment report in the U.S. increased by 122,000 in December, falling short of market expectations of 140,000 and below November's gain of 146,000.
Market participants are now turning their attention to Friday’s December payroll report following a week of mixed economic data.
Bond yields fluctuated during the session, reflecting ongoing debates about inflationary impacts from President-elect Trump’s proposed tariffs and tax policies. The 10-year Treasury yield briefly surpassed 4.7%, approaching levels not seen since late April, while the 2-year yield was at 4.279%.