U.S. stocks were steady on Wednesday after the S&P 500 closed at a record high. Investors looked to new economic data and Federal Reserve minutes for hints of rate cuts in the holiday-shortened session.
The S&P 500 (^GSPC) was trading flat after the benchmark closed above 5,500 for the first time on Tuesday. The tech-heavy Nasdaq Composite (^IXIC) was also little changed, while the Dow Jones Industrial Average (^DJI) rose 0.2%.
Stocks were subdued ahead of the early close (1 p.m. ET) of trading on Wednesday and also ahead of the market closing on Thursday for Independence Day.
The S&P 500 and Nasdaq Composite hit new record closes after Jerome Powell touted progress in cooling inflation, bolstering hopes for a rate cut even as the Fed chair reiterated there was no rush to take action. Traders are pricing in a 65% chance of a September decline, according to CME’s FedWatch tool.
Meanwhile, job creation slowed for a third straight month, with the U.S. adding just 150,000 private-sector jobs in June, fewer than the 165,000 Wall Street had expected. Wage growth for both job stayers and job changers also slowed.
The data comes just ahead of the release of the key June jobs report on Friday. Also coming are service sector and factory orders data, which will be watched for further signs of economic slowdown that could prompt policymakers to take action.
In the corporate sector, shares of Paramount Global (PARA) rose about 8% in early trading after news broke that Skydance Media has closed a deal that will give it a controlling stake in the entertainment giant.
Meanwhile, shares of Tesla (TSLA) rose more than 2% after rising as much as 10% on Tuesday as the electric carmaker delivered more than Wall Street expected.
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