Stock Rally Stalls Ahead of NFP – US Market Wrap

Stocks fell near all-time highs, as Wall Street traders prepared for key jobs data that will determine whether the Federal Reserve will cut or hold interest rates in December.

Equities fell a day after the S&P 500 set its 56th record of the year. Short-term Treasuries underperformed, and the market is at critical technical levels. Bitcoin pared a rally that had previously propelled the digital asset past $100,000, boosted by President-elect Trump’s nomination of a crypto proponent to be the next head of the US securities regulator.

In the lead-up to the US payrolls report, data showed that jobless claims reached a one-month high during the week that included the Thanksgiving holiday. Economists estimate that nonfarm payrolls increased by 220,000 in November, rebounding from two hurricanes and a now-ended strike that lowered October numbers. The unemployment rate is expected to remain unchanged at 4.1%.

The S&P 500 fell 0.2%. The Nasdaq 100 declined 0.3%. The Dow Jones Industrial Average declined 0.6%. The Russell 2000 Index dropped 1.3%. Applied Materials Inc. plummeted following an analyst downgrade. Tesla rallied after Bank of America increased its price target. Meme stocks such as GameStop and AMC Entertainment Holdings rose following a cryptic X post from Keith Gill, the online persona known as Roaring Kitty.

Treasury 10-year yields were little changed, at 4.18%. Swap trading shows that the implied odds of a quarter-point Fed cut this month are around 65%. A measure of France’s bond risk fell on hopes that lawmakers will reach an agreement on next year’s budget sooner than many investors had anticipated.

Oil fell in a choppy session after OPEC+ delayed supply increases for three months but still intends to add barrels next year to an oversupplied market.