U.S. stocks fell on Wednesday, putting Wall Street on track to give back some of its sharp gains from the past two sessions.
The Dow Jones industrial average was down 265 points, or 0.9%. The S&P 500 and Nasdaq Composite fell 1.1% and 1.3%, respectively.
Treasury yields Back on Wednesday, weight on stocks. The 10-year yield rose 10 basis points to trade at 3.713% after briefly dipping below 3.6% in the previous session.
Payroll services company ATP published its work report, which showed an increase of 208,000 jobs in September, better than expected by Dow Jones estimates. Traders are still awaiting the release of the non-farm payrolls report on Friday.
The Dow rose 825 points, or 2.8%, on Tuesday. The S&P 500 gained nearly 3.1%, while the Nasdaq composite advanced 3.3%. Those gains, coming on the back of falling bond yields, led to the S&P 500’s strongest two-day stretch since 2020.
Meanwhile, A Weakness in recent employment data Some investors wonder if the Federal Reserve will slow the pace of interest rate hikes.
Market participants wondered if those signs meant markets had finally eased after a sharp decline in the previous quarter.
“I don’t think you have to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there’s room for a rally as you go early next year.”