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US Market: Stocks slide, Oil drops as economic worries resurface


U.S. stocks declined on December 6th, 2023 as fresh economic concerns resurfaced, dragging down major indices. The S&P 500 fell 0.4%, the Dow Jones shed 0.2%, and the tech-heavy Nasdaq dropped 0.6%.

Driving the risk-off mood was payroll data indicating further labor market weakness amid a murky outlook. Private payrolls grew less than expected in November per the ADP gauge, fueling doubts over the Fed’s rate cut path. Markets are currently betting on over 100 basis points of easing in 2023 despite strategists warning against overestimating.

Meanwhile, oil prices plunged to five-month lows as demand worries amplified. West Texas Intermediate (WTI) crude settled 4% lower at $69.38 per barrel. Brent crude dropped 3.6% to $74.30 as swelling supplies outweighed OPEC’s attempted cuts. So far this year, oil has dropped 4% unable to shake off the demand slump.

The risk-aversion was evident in the stock market as well, with the Dow, S&P and Nasdaq accompanies by small-caps like the Russell 2000 ending firmly in the red.

In summary, reservations about economic vitality especially demand levels weighed on stocks and oil prices. With uncertainty lingering over the Fed’s future policy approach, further volatility can’t be ruled out in the near-term.

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