Stock futures took a hit as traders reacted to some unsettling U.S. economic data. The market's mood soured as investors processed the latest numbers.
On Tuesday, the S&P 500 posted its third consecutive losing session, prompting a dip in stock futures. S&P 500 futures slipped by 0.2%, while Nasdaq 100 futures lost 0.3%. Futures tied to the Dow Jones Industrial Average also dropped, falling by roughly 0.2%.
The U.S. Bureau of Labor Statistics released its November job report, which included data from October as well. This report provided a glimpse into the U.S. economy's health following the federal data backup caused by the government shutdown earlier this year.
The findings were mixed: while the U.S. economy shed 105,000 jobs in October, with the unemployment rate rising to 4.6% (its highest since September 2021), November saw a rebound with 64,000 jobs added, surpassing the Dow Jones consensus estimate of 45,000.
The S&P 500 and the 30-stock Dow both dropped on Tuesday, with the former falling 0.2% and the latter down 302 points, or 0.6%. This marked the third consecutive negative day for these indexes. Stocks in the energy sector also suffered losses, with U.S. crude oil closing at its lowest level since 2021 due to concerns over a looming surplus.
Bob Elliott, CEO of Unlimited Funds, commented on CNBC's "Closing Bell Overtime" that "the economy has been slowing for a while, and there had been a lot of hope in the market...but all those hopes are now basically dashed as we get this data." He advised investors to consider adding fixed income to their portfolios as the year comes to a close.
Looking ahead, Federal Reserve Governor Christopher Waller and New York Fed President John Williams are scheduled to speak on Wednesday morning. Traders are also anticipating the release of the consumer price index reading for November on Thursday.
But here's where it gets controversial: despite the recent economic data, the S&P 500 is on pace to end 2025 on a high note, up more than 15% year to date. Some stocks have seen their value at least double this year, with miner AngloGold Ashanti leading the pack, up 264%. Rare earths play MP Materials has also seen a significant rise, up 242% in 2025. Other notable performers include Palantir, Lam Research, Wayfair, Warner Bros Discovery, and Rocket Lab.
In other news, shares of homebuilder Lennar slipped in after-hours trading after the company posted disappointing guidance for the first quarter. However, fourth-quarter revenue exceeded expectations, coming in at $9.37 billion.
And this is the part most people miss: medical supply firm Medline upsized its initial public offering by a whopping $1 billion, bringing the total offering size to about $6.2 billion. Medline's IPO is set to be the largest in the U.S. market this year, signaling a resurgence in the IPO market after a period of reduced activity.
So, what do you think? Are you surprised by the market's resilience despite the recent economic data? Do you agree with Bob Elliott's advice to add fixed income to portfolios? Share your thoughts in the comments below!
