U.S. stocks close lower ahead of key jobs report

New York [US], December 6: U.S. stocks ended lower on Thursday, as investors awaited Friday's highly anticipated monthly jobs report, which could provide a clearer picture of the labor market and influence Federal Reserve policy.
The Dow Jones Industrial Average fell 248.33 points, or 0.55 percent, to 44,765.71. The S&P 500 sank 11.38 points, or 0.19 percent, to 6,075.11. The Nasdaq Composite Index shed 34.86 points, or 0.18 percent, to 19,700.26.
Six of the 11 primary S&P 500 sectors ended in red, with materials and industrials leading the laggards by losing 1.40 percent and 1.21 percent, respectively. Meanwhile, consumer discretionary and consumer staples led the gainers by going up 0.95 percent and 0.39 percent, respectively.
The U.S. Department of Labor is scheduled to issue key employment data for November 2024, with market consensus forecasting 211,000 new non-farm payrolls last month.
Federal Reserve Chair Jerome Powell recently struck an optimistic tone regarding the U.S. economy's resilience, suggesting a cautious approach to monetary policy. However, he refrained from disputing market expectations of a potential December rate cut, leaving investors searching for more clarity.
"The problem you have is that valuations are stretched across the board," said Keeley Teton portfolio manager Brian Leonard. "You're sitting at records, but there's not a lot of enthusiasm or euphoria. Historically, when the records happened, the valuations were more reasonable."
In the cryptocurrency market, Bitcoin briefly surpassed the significant 100,000-U.S.-dollar milestone late on Wednesday, hitting highs of around 103,000, before retreating to trade near 99,000 on Thursday. The surge was partly fueled by President-elect Donald Trump's announcement of Paul Atkins as the next chair of the Securities and Exchange Commission. Atkins, known for his pro-market stance, has been seen as a favorable pick for the crypto industry.
Markets remain on edge ahead of the jobs report, which is expected to provide critical insight into economic momentum and the Fed's next moves.
Wall Street currently sees a 70.1 percent chance of a quarter-point cut when the Federal Reserve's policy committee meets later this month, according to the CME FedWatch Tool. If the jobs report comes in too hot, it could cast doubt on a December interest rate cut.
Source: Xinhua