Dow Jones Today: Stocks Down Slightly as Investors Digest Latest Labor Market Data; Bitcoin Continues Falling

Major indexes were slightly higher in midday trading Wednesday as investors digested fresh labor market data.

The S&P 500 was up 0.1% in recent trading, while the Dow Jones Industrial Average and Nasdaq Composite were fractionally higher. Stocks fell sharply on Tuesday after surprisingly strong economic data sparked renewed concerns about where interest rates are headed.

The ADP monthly private sector employment report this morning showed that fewer jobs were added in December than economists had anticipated, while weekly jobless claims came in lower than expected. The data are precursors to Friday’s highly anticipated release of the December jobs report. Market participants are watching the data closely for information that could affect the Federal Reserve’s decision-making on interest rates.

Data released Tuesday showed that there were far more job openings in November than economists had expected. That report, along with a hotter-than-expected reading on services sector activity, underscored the continued strength of the U.S. economy and raised concerns about whether the Fed will cut its key rate again.

The yield on 10-year Treasurys, which is correlated with rate expectations, was down slightly at 4.68% in recent trading after rising to 4.73% earlier in the day and hitting its highest point since April.

Large-cap technology stocks, which led Tuesday’s selloff, were mostly higher today. Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and Tesla (TSLA) were gaining ground, while Meta Platforms (META) fell about 1%.

Software maker Palantir (PLTR), which was the S&P 500’s top performer last year, was down 3% this morning, adding to yesterday’s 8% decline. The stock is down 20% from its all-time high set on Dec. 24.

Shares of MicroStrategy (MSTR), one of the world’s largest holders of bitcoin, and crypto exchange Coinbase Global (COIN) were down 3% and 2%, respectively, as the digital currency continued to slump.

Bitcoin was at $94,600, down from an overnight high of around $97,000 and well below its Monday high of near $103,000.

Gold futures were up 0.7% at $2,685 an ounce, while WTI crude oil futures were down more than 1%.