Wall Street Closes Mostly Lower as Investors Focus on Key Economic Data
The S&P 500 pared earlier gains after hitting a fresh record high earlier in the session, driven in part by renewed optimism on AI.
Quick overview
- U.S. equities closed mostly lower as investors reacted to weaker-than-expected labor market data, with the Dow Jones falling 0.9% and the S&P 500 slipping 0.3%.
- Technology stocks, however, remained resilient, with the Nasdaq Composite edging up 0.2%, driven by optimism in AI investments.
- Private employers added 41,000 jobs in December, falling short of expectations, while job openings are anticipated to decline slightly.
- Oil prices dropped following an agreement between the U.S. and Venezuela allowing for significant crude oil exports to Washington.
U.S. equities wobbled after weaker-than-expected labor market data, although technology stocks managed to stay in positive territory.
Wall Street traded lower today.
Wall Street closed mostly lower on Wednesday, January 7, as investors shifted their focus to a series of key economic indicators, moving past recent geopolitical tensions. Analysts noted that markets appear to be looking beyond the shock generated by last weekend’s U.S. intervention in Venezuela, which resulted in the capture of the country’s former president, Nicolás Maduro.
In this context, the Dow Jones Industrial Average fell 0.9% to 48,996.19 points, the S&P 500 slipped 0.3% to 6,921.53 points, while the Nasdaq Composite edged up 0.2% to 23,584.28 points.
Key U.S. Economic Indicators Take Center Stage
U.S. private employers added fewer jobs than expected in December, although the figure marked a rebound from the sharp contraction seen the previous month. Private payrolls increased by 41,000 in the final month of 2025, compared with a decline of 29,000 in November, according to ADP data. Economists had forecast an increase of 49,000 jobs.
Meanwhile, another closely watched indicator is expected to show that job openings—a measure of labor demand—declined slightly in November to 7.61 million.
The health of the labor market remains a critical factor in recent Federal Reserve interest rate decisions. U.S. central bank policymakers cut borrowing costs aggressively throughout 2025, prioritizing a weakening labor outlook over persistent inflation signals.
Investors are also awaiting the release of a key gauge of U.S. services-sector activity. Services account for more than two-thirds of the U.S. economy, making the ISM data a key snapshot of economic conditions at the end of the fourth quarter.
Notable Stocks and Corporate Moves
The S&P 500 pared earlier gains after hitting a fresh record high earlier in the session, driven in part by renewed optimism surrounding artificial intelligence.
- Alphabet Inc. Class A shares jumped more than 2% after Canaccord Genuity raised its price target to $390 from $330, citing confidence that AI-related investments will drive stronger growth.
- Nvidia gained 1%, helping support the broader tech sector and offset weakness in Meta Platforms (-1.8%) and Apple (-0.8%).
- Shares of Vertical Aerospace Ltd rose 1.5% after William Blair initiated coverage with an “Outperform” rating.
Oil Prices Slide, Drawing Investor Attention
Oil prices came under pressure after President Donald Trump announced Tuesday that the United States and Venezuela had reached an agreement allowing Caracas to export up to $2 billion worth of crude oil to Washington.
Earlier, Trump had demanded that Venezuela and interim president Delcy Rodríguez grant U.S. oil companies full access to the country’s vast energy sector, warning that failure to comply could trigger a renewed U.S. military intervention.
In a social media post, Trump stated that Venezuela would deliver between 30 million and 50 million barrels of “sanctioned” crude oil to the United States.
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