US: Stocks wobble after being hit with another round of dour data

THE S&P 500 and Nasdaq fell on Wednesday (Apr 5) as a growing wave of weak economic data deepened worries that the Federal Reserve’s rapid interest rate hikes might tip the US economy into a recession.

March ADP national employment came in below estimates as did the March ISM non-manufacturing PMI.

The weak data helped push the US 10-Year Treasury yield under 3.30 per cent. At 3.2660 per cent, the yield hit its lowest level since early-September of last year.

Additionally, the 10-year yield is on track to end down for a sixth-straight day if it finishes below 3.3370 per cent. That will be its longest run of lower closes since a 13-day slide during the February-March 2020 pandemic panic.

A majority of S&P 500 sectors closed lower on the day with more economically sensitive groups such as consumer discretionary and industrials among weaker groups.

Defensive sectors such as utilities and staples gained.

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By a small margin, growth ended a four-session win streak vs value.

Of note, with the market settling, volume on US exchanges is just 10.15 billion shares, putting it on track to be one of the slower trading days of the year. Indeed, the average for the full session over the last 20 trading days is nearly 13 billion shares.

Markets now await the latest read on jobless claims, which is due on Thursday, followed by the March non-farm payroll report on Friday. US stocks will be closed that day for the Good Friday holiday. REUTERS