By Liz Moyer
Investing.com -- U.S. stocks were wobbling again on Wednesday as investors await a speech from Federal Reserve Chair Jerome Powell this afternoon, and listen for clues as to the central bank’s next move.
At 10:38 ET (15:38 GMT), the Dow Jones Industrial Average was down 199 points or 0.6%, while the S&P 500 fell 0.3% and the NASDAQ Composite rose 0.3%.
Powell’s speech follows public appearances by several other Fed officials this week. James Bullard, the St. Louis Fed president, drove home the message that interest rates will have to be kept higher for longer to tame inflation, with the benchmark rate staying above 5% into 2024.
Investors had been looking for the Fed to eventually pause its rate increases and perhaps pivot to rate cuts. The Fed’s meeting next month is its last for this year, and expectations are that it will raise rates again, but probably at a smaller half-percentage-point increment.
Hopes for a slowdown in rate hikes and data that the economy is cooling have lifted stocks, with the S&P headed for its second month of gains.
ADP’s private payrolls report said employers added 127,000 jobs in November, below expectations of 200,000. The government’s more comprehensive job report for November will come out on Friday.
Meanwhile, the second estimate of third-quarter gross domestic product said the economy expanded at a 2.9% annualized rate, beating expectations for 2.7%.
Electric vehicle maker Tesla's (NASDAQ:TSLA) November China sales got a lift from price cuts and incentives for its Model 3 and Model Y, according to Reuters, citing data from China Merchants Bank International. Shares of Tesla rose 2%.
Biogen Inc (NASDAQ:BIIB) shares rose 6.5% after details from a study of its Alzheimer's drug appeared to confirm success in a trial but the authors said more study is needed.
Oil rose. Crude Oil WTI Futures was up 2.8% to $80.35 a barrel, while Brent Oil Futures crude was up 2.9% to $86.70 a barrel. Gold Futures rose 1% to $1,765.