S&P 500: JOLTS Data Pressure; Tesla, US Steel Slide; South Korea ETF Drops on Tensions

Nasdaq Near Records as Jobs Data Shapes Expectations

US stock markets showed a mixed performance on Tuesday, reflecting investor reactions to October’s jobs data and anticipation of Federal Reserve commentary. The Nasdaq Composite held near its record highs, while the S&P 500 and Dow Jones Industrial Average retreated, signaling a pause after November’s strong rally.

At 16:39 GMT, the Dow Jones Industrial Average is trading 44614.64, down 167.36 or -0.37%. The S&P 500 Index is at 6038.47, down 8.68 or -0.14% and the Nasdaq is trading 19417.92, up 13.97 or +0.07%.

JOLTS Report Highlights Labor Market’s Mixed Signals

Job openings rose unexpectedly in October to 7.74 million, surpassing estimates of 7.52 million, according to the JOLTS report. The quits rate increased from 1.9% to 2.1%, reflecting stronger worker confidence, but a slowdown in hiring pointed to a labor market showing mixed signals. This report is part of a crucial week of employment data, with Friday’s payroll numbers expected to offer further clarity.

Tesla and Steel Stocks Take a Hit

Tesla shares slipped in early trading after shipments of its China-built vehicles fell for another month, casting doubt on the company’s ability to meet its sales goals. Compounding the concerns, a court once again rejected CEO Elon Musk’s $56 billion compensation package.

US Steel experienced one of the day’s sharpest declines, dropping 8%. The selloff followed President-elect Donald Trump’s announcement to block its $15 billion merger with Japan’s Nippon Steel, citing the need to protect American manufacturing. Trump emphasized using tariffs and tax incentives to support domestic steel production.

Global Tensions Ripple into Markets

The iShares MSCI South Korea ETF fell over 4% as geopolitical tensions in Asia escalated. South Korean President Yoon Suk Yeol declared martial law and accused opposition leaders of undermining the government, adding fresh uncertainty to the region’s economic outlook.

Record Rallies Pause but Optimism Remains

November was a standout month for the markets, with the Dow rising 7.5% and the S&P 500 adding 5.7%. Analysts highlight that December has historically been positive in election years with strong postelection rallies. However, Ken Mahoney of Mahoney Asset Management warns that after November’s significant gains, December may face limited upward momentum, even with solid demand for equities.

What Traders Should Expect Next

As of Tuesday, the likelihood of a 25-basis-point rate cut at the Fed’s December meeting has climbed to 69%, up from 62% a day earlier, according to CME’s FedWatch Tool. Fed policymakers Austan Goolsbee and Adriana Kugler are set to speak this week, leading up to Chair Jerome Powell’s much-anticipated remarks on Wednesday.

The outlook leans cautiously bullish, supported by interest rate cut expectations and robust demand for equities. However, traders should watch labor market updates and geopolitical developments, as these factors could inject volatility into what has otherwise been a strong year-end rally.

More Information in our Economic Calendar.