US sharemarkets finished mixed on Tuesday, extending a cautious tone as investors assessed a delayed November jobs report and signs of softening economic momentum. The S&P 500 fell 0.2% to post a third straight decline, while the Dow Jones Industrial Average dropped 302 points, or 0.6%. In contrast, the Nasdaq Composite edged 0.2% higher after reversing earlier losses in the final hour of trade.
The session followed a weak start, with markets initially pressured by labour market data that added to uncertainty around the outlook for growth and monetary policy.
Jobs data highlights labour market strain
November payrolls rose by 64,000, beating forecasts for a 45,000 increase. However, the Bureau of Labor Statistics also revised October employment sharply lower, showing a loss of 105,000 jobs. The unemployment rate rose to 4.6%, above expectations and its highest level in more than two years.
Taken together, the figures suggested job creation is slowing while labour market slack is increasing, reinforcing concerns that the US economy is losing momentum late in the year.
Fed expectations remain steady
Despite the mixed labour signals, interest rate expectations were little changed. Futures markets continue to price a low probability of a Federal Reserve rate cut at the January meeting, with odds sitting around 24%. Traders appear to view the data as consistent with a pause rather than an imminent policy shift, keeping attention focused on how long restrictive settings remain in place.
Oil slump weighs on energy stocks
US crude oil prices fell sharply, dropping below US$55 a barrel to their lowest level since early 2021. The move added to pressure across the energy sector, with major producers including Exxon Mobil and Chevron down around 2%. Other energy names such as ConocoPhillips and Marathon Petroleum also finished lower, reflecting concerns about weakening demand and excess supply.
Tech consolidation continues
Technology stocks showed mixed performance as profit-taking continued in several high-profile artificial intelligence names. Broadcom, Oracle and Microsoft ended lower, extending a rotation away from some of the year’s strongest performers. Investors have increasingly shifted toward defensive areas of the market, including health care and utilities, as volatility picks up.
Australian market outlook
Australian shares are set to open little changed, with ASX 200 futures down 2 points to 8,581. The local session is expected to mirror the subdued tone in New York.
On the corporate front, Elders is due to release full-year results, while Treasury Wine Estates will host an investor call. Annual meetings are scheduled for Centuria Industrial REIT and Dyno Nobel. There is no domestic economic data due, while New Zealand will release third-quarter balance of payments figures.
Global data watch
Overseas, markets are awaiting November inflation readings from the UK and the euro area. UK headline inflation is expected to ease from September levels, reinforcing expectations that price pressures are gradually moderating across major economies.
