Wall Street's Stumble: Energy and Healthcare Stocks Drag Indices

Wall Street's main indexes slipped due to downturns in healthcare and energy stocks, despite a partial recovery by the Nasdaq. Key economic reports showed mixed job growth and retail sales, fueling concerns over Federal Reserve policies. Rising unemployment and market declines highlighted investor apprehensions amid economic uncertainty.

Wall Street's indices faced downturns on Tuesday as healthcare and energy stocks took a hit, though the Nasdaq managed to recover some losses. Investors keenly observed delayed economic data to anticipate the Federal Reserve's forthcoming monetary policy. The Labor Department revealed a 64,000 increase in nonfarm jobs for November following an October drop attributed to government spending cuts, with unemployment rising to 4.6% due to economic uncertainty fueled by President Donald Trump's trade policies.

A separate report indicated stagnation in October's retail sales, falling short of economists' predictions of a 0.1% increase. Analysts pointed to the slow data collection during a recent government shutdown as a potential distortion factor. Mark Hackett, chief market strategist at Nationwide, remarked on the dated nature of the data, highlighting investor focus on its implications for the Fed. Despite last week's indication of a 25 basis point cut, markets are now pricing in over twice that amount for next year.

By 2 p.m. EST, Dow Jones fell by 303.67 points to 48,112.89, S&P 500 dropped 28.91 points to 6,787.60, and Nasdaq slid by 14.24 points to 23,043.18. The decline was widespread across sectors except for information technology, with energy stocks plummeting as crude prices hit their lowest since 2021. Continued uncertainty over interest rates and tech valuations exerted pressure on market sentiment, with Pfizer and Humana reporting significant stock drops due to various challenges.

(With inputs from agencies.)