US stock performance was mixed on Tuesday, with the Nasdaq Composite gaining ground while the Dow Jones Industrial Average and S&P 500 declined. Investors digested the latest jobs report, which presented a somewhat contradictory picture of the labor market.
Market Overview
- The Nasdaq Composite edged up by 0.2%, buoyed by a surge in Tesla shares.
- The S&P 500 slipped by 0.2%.
- The Dow Jones Industrial Average fell by 0.6%, equivalent to a 300-point drop.
Tesla's stock reached a new record high following advancements in its robotaxi technology. The stock has gained 30% year-to-date. The company's shift toward robotaxis, humanoid robots, and AI chips has marked a volatile but ultimately successful year for the EV maker.
Economic Data and Federal Reserve Policy
The November jobs report revealed that the US economy added 64,000 jobs, exceeding expectations. However, the unemployment rate also rose to 4.6%, the highest level since 2021. Furthermore, October's figures were revised to show a loss of 105,000 jobs.
This data has intensified the debate over the Federal Reserve's future monetary policy. The central bank is weighing whether to continue easing its policies in 2026 or to adjust its course. Investors are anticipating two rate cuts from the Fed next year. November's consumer inflation numbers will be released on Thursday. These reports, along with other economic indicators, will inform the Fed's next rate decision in January.
Corporate News
- Ford (F) announced it would take a $19.5 billion charge related to its shift away from electric vehicles.
- Pfizer (PFE) shares declined after the company issued a weak profit outlook for 2026. The company's adjusted profit guidance fell below analysts' expectations, despite revenue projections aligning with estimates. Bank of America analysts reiterated their "Neutral" rating on Pfizer, citing concerns about the company's loss of exclusivity period.
- Affirm (AFRM) stock experienced a boost following comments from CFO Robert O'Hare regarding the company's extended partnership with Amazon. The buy now, pay later platform renewed its agreement with Amazon for another five years. O'Hare emphasized the mutually beneficial nature of the partnership, highlighting the increased conversion rates and new users brought to both platforms.
Energy Market Update
Gasoline prices continued their descent, hitting a fresh four-year low ahead of the Christmas holiday season. The national average at the pump stood at $2.90, a decrease of $0.12 compared to the previous year. This decline is attributed to increased output from US refineries and falling crude prices.
West Texas Intermediate (WTI) futures hovered around $55 per barrel, marking their lowest level since 2021, while Brent crude, the international benchmark, also experienced a significant drop during the same period.
| Crude Oil Benchmark | Current Price (Approx.) | Year-to-Date Change |
|---|---|---|
| West Texas Intermediate (WTI) | $55 per barrel | -22% |
| Brent | (Data Missing) | -20% |
FAQs
Why did the stock market have mixed performance today?
The Nasdaq rose due to Tesla's surge, while the Dow and S&P 500 declined as investors digested a mixed jobs report showing both job growth and a rising unemployment rate. This contradictory data fueled uncertainty about the Federal Reserve's future monetary policy.
What's driving Tesla's stock to record highs?
Tesla's stock reached a new record high due to advancements in its robotaxi technology and the company's overall shift toward robotaxis, humanoid robots, and AI chips. These developments have contributed to a volatile but successful year for the electric vehicle maker.
What's causing gasoline prices to fall, and how low are they?
Gasoline prices are falling due to increased output from US refineries and declining crude prices. The national average at the pump is currently $2.90, a four-year low and a decrease of $0.12 compared to the previous year.
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