The Dow Jones Industrial Average fell for a third straight session Wednesday as investors remained cautious throughout the first week of Q2. The 30-stock averages lost over 40 points, while the S&P 500 Index and Nasdaq Composite added 0.1% and 0.2%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Moving Markets:
Federal Reserve Chair Jerome Powell said in prepared remarks on Wednesday that policymakers still need more evidence that inflation is easing across the economy before the central bank can begin its rate cutting campaign.
"On inflation, it is too soon to say whether the recent readings represent more than just a bump," Powell said in prepared remarks at Stanford University.
"We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2 percent," he added. "Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy."
On the Economic Front:
Private sector payrolls grew at a less-than-expected rate in February, payrolls processing firm ADP reported Wednesday, offering a look at the health of the U.S. job market ahead of the Labor Department's "official" monthly report on Friday.
U.S. employers added 140,000 positions last month, added on January's upwardly revised print of 111,000 but coming in 10,000 shy of estimates. Job growth came from multiple areas of the economy, with leisure and hospitality adding the most positions with 41,000, while construction saw 28,000 new positions, trade, transportation and utilities advanced by 24,000, finance added 17,000 and other services gained by 14,000. Meanwhile, annual pay rose 5.1%, with ADP noting that was the smallest rise since August 2021.
"Job gains remain solid. Pay gains are trending lower but are still above inflation," said Nela Richardson, chief economist at ADP, in a statement. "In short, the labor market is dynamic, but doesn't tip the scales in tem of a Fed rate decision this year."
The ADP's jobs report has historically undershot the Labor Department's monthly report in recent months, with economists surveyed by Dow Jone expecting Friday's report to show 198,000 private payroll additions for February.
In the News:
Intel
The chipmaker said much of the Foundry's revenue comes from its operations, with losses expected to peak in 2023 and break even "midway" between Q2 and the end of 2030.
"Intel Foundry is going to drive considerable earnings growth for Intel over time," CEO Pat Gelsinger said on a call with investors on Tuesday. "2024 is the trough for Foundry operating losses."
For Thursday:
Market participants will react to even more Fedspeak on Thursday, as well as the Labor Department's latest reading for weekly unemployment claims.
