The U.Sstock market saw a mix of outcomes on Wednesday, giving investors plenty to digest in terms of recent employment data and Federal Reserve meeting minutes, all while navigating news about tariffsThe Dow Jones Industrial Average managed to rise by 106.84 points, translating to a modest gain of 0.25% to close at 42,635.20. Meanwhile, the Nasdaq Composite experienced a slight decline of 0.06%, settling at 19,478.88, and the S&P 500 edged upward by 0.16%, finishing at 5,918.25. Notably, the markets are preparing for a shutdown on Thursday due to the day of mourning for former President Carter.

Another significant development came from the bond market as the yield on the 10-year Treasury note surged to over 4.7%, marking its highest point since April of the previous yearTools from the Chicago Mercantile Exchange's FedWatch suggest that a robust labor market may lead to the Federal Reserve keeping interest rates steady for the time being, with traders speculating a potential rate cut not occurring until May or June of the upcoming year.

According to the Federal Reserve’s minutes, officials face mounting pressures as they anticipate the impact of potential policies under the incoming administration of the president-elect

The risk of sustained inflation presents a notable concernFed Governor Christopher Waller commented on Wednesday that he expects inflation to continue its downward trend through 2025, which would allow for lower interest rates, although the pace of such reductions remains uncertain.

The theme of inflation loomed large throughout discussionsCharlie Ripley, a senior investment strategist with Allianz Investment Management, remarked, “Inflation is the wildcard this year.” With the evolving situation, various factors could potentially push inflation rates higher.

On another front, reports indicate that the president-elect is contemplating the implementation of a new tariff plan through the invocation of international economic emergency powers, which grants the president authority to manage imports during national emergenciesAs the inauguration date approaches, apprehensions grow regarding how aggressive immigration policies and tariffs may contribute to global inflationary pressures.

Thomas Hayes, Chair of Great Hill Capital, stated the possible short-term effects on inflation from broad tariffs, while questioning whether reductions in government spending could counterbalance those effects

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He noted, “The Fed will observe and see if punitive tariffs become a reality and how they could affect inflation.”

Stock-specific movements were noted, particularly among prominent tech firmsMicrosoft increased by 0.5%, Apple inched up by 0.2%, while both Amazon and Nvidia held steady, and Google faced a 0.7% drop along with Meta, which fell by 1.1%. In a more pronounced shift, eBay’s shares surged nearly 10%, buoyed by Meta Platforms' announcement of a test that enables consumers to shop via listings on Facebook Marketplace.

Conversely, Edison International saw a significant decline of 10.2% as its California subsidiary took proactive measures by cutting off power to customers to prevent wildfire-related damage to its distribution linesFurthermore, the quantum computing sector experienced serious setbacks; shares of Rigetti Computing and IonQ plummeted over 40% following statements from Nvidia's CEO Jensen Huang, who projected a long timeline before applications using emerging technologies become mainstream.

Moderna's stock fell by 9.2%, primarily where UBS revised its price target from $108 down to $96. The Nasdaq Golden Dragon China Index also saw a dip of over 0.6% during this trading session.

In economic indicators, signs from the labor market were rather mixed

The ADP employment report illustrated a slower-than-expected gain of just 122,000 jobs in the private sector last monthNela Richardson, ADP's chief economist, commented, “The labor market is slowing to a more moderate pace of growth with hiring and wage increases easing.” In contrast, a report from the U.SDepartment of Labor noted that initial claims for unemployment benefits dipped to 201,000, outperforming expectationsAdditionally, Tuesday's data revealed an unexpected increase in job vacancies for November.

Consumer credit data attested to a significant decrease as credit card balances fell markedly in November, resulting in the largest monthly drop in unpaid consumer debt in over a yearThe Federal Reserve’s data indicated a decrease of $7.5 billion in total consumer credit, markedly down from a corrected increase of $17.3 billion in October.

Meanwhile, oil prices exhibited volatility as U.S