Traders work on the ground on the New York Stock Exchange (NYSE) in New York City, U.S., August 26, 2025.
Brendan McDermid | Reuters
All three main indexes closed at report highs Tuesday as buyers moved previous considerations concerning the state of the U.S. economic system.
The S&P 500 index settled up 0.27% at 6,512.61, whereas the Nasdaq Composite gained 0.37% to finish the day at 21,879.49, with the latter hitting a brand new all-time intraday excessive as effectively. The Dow Jones Industrial Average completed up 196.39 factors, or 0.43%, at 45,711.34, due to a surge in UnitedHealth shares.
Investor worries that the economic system is probably not holding up in addition to beforehand thought had been exacerbated Tuesday after the Bureau of Labor Statistics up to date its jobs figures for the 12 months by means of March, decreasing the full payroll positive factors throughout that interval by a whopping 911,000. Not solely had been the revisions on the excessive finish of what Wall Street anticipated however they had been additionally the biggest on report going again to 2002.
“I think the economy is weakening,” JPMorgan Chase CEO Jamie Dimon told CNBC on the heels of the report. “Whether it’s on the way to recession or just weakening, I don’t know.”
While the info had minimal impression on shares Tuesday as a result of they had been relating to figures from six months in the past, the report may reinforce calls for the Federal Reserve to be extra aggressive with charge cuts this yr.
“The jobs picture keeps deteriorating and while that should make it easier for the Fed to cut rates this fall, it could also throw some cold water on the recent rally,” stated Chris Zaccarelli, chief funding officer at Northlight Asset Management.
Wall Street is coming off a winning session, with key chipmakers Broadcom and Nvidia serving to carry the Nasdaq to all-time highs. During Tuesday’s session, nevertheless, Broadcom shares reversed course, falling greater than 2%, after seeing sturdy positive factors within the prior two buying and selling days. Its one-week advance is sort of 13%.
Investors at the moment are bracing for two key inflation stories that might decide what Fed policymakers will do at their assembly subsequent week. Last week, a surprisingly weak jobs report added to hopes that the trail for rates of interest is decrease, however any stunning power within the inflation readings may throw a wrench in that outlook. The August producer worth index report is due out Wednesday morning, whereas the buyer worth index is slated for launch on Thursday.
“If the CPI shows a worsening trend of higher inflation on Thursday then the market will begin worrying about stagflation,” Zaccarelli stated. “The bull market has been extremely resilient this year, but we could be approaching an inflection point where it is tested again.”