Investing.com – U.S. stocks hovered around a flat line on Wednesday as technology continued to weigh on the broader market, sending it lower after falling in the previous session.
At 12:59 pm ET (1759 GMT), the index was down 33 points, or 0.1%, the index was down 0.1%, and the index was down 60 points, or 0.3%.
Tech companies struggle to shake off malaise even as Treasury yields remain steady
Technology stocks remained under pressure after a selloff in the previous session, even as Treasury yields stabilized after a sharp rise on Tuesday.
Treasury yields stabilized after Fed Chairman Christopher Waller backed further rate cuts amid expectations that inflation is likely to fall further.
Most mega-cap tech stocks were trading in the red, with Apple Inc (NASDAQ:), Alphabet Inc Class C (NASDAQ:), Meta Platforms Inc (NASDAQ:) trading in the red, and NVIDIA Corporation (NASDAQ:) hovering near a flat line.
Meanwhile, shares of Palantir Technologies Inc (NASDAQ:) continued to fall on Tuesday as concerns over lofty valuations remained a concern. The stock is down about 16% since hitting an all-time high last month.
Employment data outpaces nonfarm payroll data
The number of Americans filing for first-time unemployment benefits unexpectedly fell last week, hitting the lowest level since February, a sign of a strengthening labor market.
Initial claims for state unemployment aid fell to 201,000 for the week ended Jan. 4, while the four-week moving average, which is designed to account for volatility in weekly earnings, fell to 213,000. It previously stood at 223,250.
Elsewhere, private sector payrolls increased by 122,000 jobs last month after rising by 146,000 in November, ADP’s national employment report showed.
A series of economic indicators released earlier this week also pointed to an unexpected rise in job openings and persistent inflation. Taken together, the data ahead of the all-important monthly U.S. jobs report later this week has bolstered bets that the Federal Reserve will be in no rush to make further possible interest rate cuts in 2025.
Investors will also be watching Fed Chairman Christopher Waller’s speech on Wednesday, as well as minutes from the latest meeting of the Federal Open Market Committee, which sets interest rates, for more clues about the central bank’s policy trajectory.
Exxon Mobil flags affect profits
In the corporate sector, Exxon Mobil (NYSE:) shares fell 1.5% after the oil major warned that lower refining profits, as well as weak earnings from all of its operations, would reduce its fourth-quarter profit by about $1. 75 billion compared to the previous quarter. three month period.
Shares of London-based rival Shell (NYSE:) fell 2% after the company said it would have to pay $1.3 billion in costs related to approvals in Germany and the United States in the fourth quarter. The company’s statement added that profit at its integrated gas division would also be “significantly lower” than in the third quarter.
(Peter Nurse and Ambar Warrick contributed to this article.)