The three major Wall Street indexes delivered mixed performances on Wednesday, following a negative start to the session.

Investors digested key economic reports and remarks by Donald Trump that fueled market uncertainty.

The Dow Jones Industrial Average, comprising 30 major companies, rose 0.25% to close at 42,635.20 points. The S&P 500, representing the most valuable companies, edged up 0.16% to 5,918.25 points. Meanwhile, the Nasdaq Composite fell 0.06% to 19,478.88 points.

SPX

Economic Reports in Focus

Investors assessed data from ADP showing a sharp slowdown in private payroll growth in December. In contrast, the U.S. Labor Department reported a decline in initial jobless claims, hinting at some resilience in the labor market.

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The Federal Reserve’s meeting minutes, also released Wednesday, revealed growing concerns among policymakers about persistent inflationary pressures, exacerbated by potential tariff policies anticipated under Trump’s administration.

Tariff Fears and Bond Yields

Market sentiment took a hit following a CNN report that Trump might use the Emergency Economic Powers Act to implement a new tariff program. This heightened concerns about prolonged inflation and its impact on monetary policy.

In this context, the yield on the 10-year U.S. Treasury note climbed to 4.73%, its highest level since April 25, before easing slightly to 4.681%. The rise in yields added pressure to equities, contributing to the market’s volatile trading.

U.S. markets have faced headwinds this week amid fears of stickier inflation and its potential impact on the Federal Reserve’s anticipated rate-cut trajectory.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.