The U.S. stock market remained relatively flat on Tuesday, as major indices paused their recent rally ahead of Federal Reserve Chairman Jerome Powell’s upcoming speech and crucial jobs data expected later this week.
At 12:47 PM ET, the S&P 500 dipped slightly by 0.03%, the NASDAQ Composite edged up 0.1%, while the Dow Jones Industrial Average declined 0.1%.
Labor Market Data Surprises Analysts
New data from the U.S. Bureau of Labor Statistics showed job openings in October rose to 7.7 million, beating economists’ forecasts of 7.5 million and up from September’s 7.4 million.
This unexpected uptick highlights continued strength in the labor market ahead of Friday’s anticipated November nonfarm payrolls report.
Federal Reserve members have emphasized the importance of economic data in guiding monetary policy decisions. On Monday, Fed Governor Christopher Waller indicated he supports a potential rate cut in December but stressed his decision would depend on upcoming economic reports.
Investors now await Jerome Powell’s speech on Wednesday for additional insights into the Fed’s direction. While markets largely anticipate a December rate cut, uncertainty looms over future monetary policy, particularly with inflationary pressures potentially heightened by a second Trump administration.
Tesla Takes a Hit Following Court Ruling
Tesla Inc. (NASDAQ: TSLA) shares dropped over 1% after a Delaware court reaffirmed its decision to block Elon Musk’s $56 billion compensation package, labeling it as excessive. Shareholders had voted to reinstate the package, but the court maintained its January ruling against it.
Zscaler Declines Despite Solid Earnings
Zscaler Inc. (NASDAQ: ZS) fell 4%, overshadowed by cautious guidance for the current quarter despite surpassing fiscal Q1 earnings estimates and raising its annual forecast.
AT&T Surges on Positive Guidance and Buyback Announcement
AT&T Inc. (NYSE: T) rose 3% after the telecom giant delivered a strong 2025 outlook. The company also announced plans to accelerate profits by 2027, accompanied by a $20 billion stock buyback program, boosting investor confidence.
Big Movers: Credo Soars, FedEx Stumbles
- Credo Technology Group Holding Ltd. (NASDAQ: CRDO) skyrocketed 47% following its Q3 earnings, which beat Wall Street expectations.
- FedEx Corporation (NYSE: FDX) slid over 3% after Bernstein downgraded the stock from “buy” to “market perform,” citing policy and execution risks.
Key Takeaways for Investors
With the Federal Reserve’s rate decisions and jobs data driving market sentiment, investors are taking a cautious stance. Eyes will remain on Powell’s Wednesday address and Friday’s payroll data for signs of potential shifts in the Fed’s trajectory.
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