Equities Fall Intraday as Markets Evaluate Macro Data

02:15 PM EST, 12/16/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday as traders parsed the latest economic data, including a report showing the unemployment rate reached the highest level in more than four years.

The Dow Jones Industrial Average was down 0.9% at 47,985.8 after midday Tuesday, while the S&P 500 fell 0.7% to 6,766. The Nasdaq Composite lost 0.5% to 22,948.9. All sectors were in the red, led by a 2.9% slump in energy.

In economic news, total nonfarm payrolls in the US rose by 64,000 in November, delayed government data showed Tuesday. The consensus was for a 50,000 increase, according to a survey compiled by Bloomberg.

The unemployment rate ticked up to 4.6% in November, the highest since September 2021, while Wall Street expected a 4.5% print.

The Bureau of Labor Statistics also published a partial update for October, showing payrolls fell by 105,000 due to a sharp decline in government jobs.

"The delayed US employment reports for October and November confirmed what we feared based on the alternative data -- the labor market can no longer be described as resilient," BMO said in a note. "Bottom line, the evidence of labor market slowing continues to mount."

Last week, the Federal Reserve reduced its benchmark lending rate by 25 basis points, marking a third straight cut amid continued concerns about the labor market.

Markets are pricing in a roughly 76% probability that the central bank will keep interest rates unchanged next month, according to the CME FedWatch tool.

US private-sector output growth hit a six-month low in December as price pressures intensified "noticeably," according to S&P Global's (SPGI) flash purchasing managers' index.

"Higher prices are again being widely blamed on tariffs, with an initial impact on manufacturing now increasingly spilling over to services to broaden the affordability problem," S&P Global Market Intelligence Chief Business Economist Chris Williamson said. "With new sales growth waning especially sharply in the lead up to the holiday season, economic activity may soften further as we head into 2026."

Retail sales were flat in October as outlays on motor vehicles and at fuel stations declined, delayed data from the US Census Bureau showed Tuesday.

US Treasury yields were lower intraday, with the 10-year rate down 2.5 basis points at 4.16% and the two-year rate dropping 2.7 basis points to 3.48%.

Brent crude futures fell below $60 per barrel Tuesday, reaching the lowest level since February 2021 as traders weighed oversupply concerns amid optimism around a ceasefire between Russia and Ukraine, Rystad Energy said in a note e-mailed to MT Newswires.

The global benchmark dropped 2.5% to just above $59 in afternoon trade, having hit as low as $58.72 earlier in the day. West Texas Intermediate was down 2.6% at $55.22 a barrel, recovering from the day's lowest point of $54.89.

On Monday, US President Donald Trump said an agreement to end the Russia-Ukraine war may be within touching distance, Reuters reported.

In company news, Pfizer (PFE) on Tuesday issued a downbeat earnings outlook for 2026 and said its COVID-19 sales are expected to decline during the year on an annual basis. The pharmaceutical giant revised its 2025 revenue guidance. Pfizer (PFE) shares were down 5.1% intraday, among the steepest declines on the S&P 500.

Ford Motor (F) said it expects to record charges of $19.5 billion as the automaker scales back some electric vehicle operations amid lower-than-expected demand, high costs and regulatory changes. The company's shares were down 0.1%.

Estee Lauder (EL) was the second-best performer on the S&P 500, up 2.9%, as Evercore ISI raised its price target on the cosmetics company's stock to $125 from $115 while maintaining an outperform rating.

Lennar (LEN) and Worthington Enterprises (WOR) are scheduled to report their latest quarterly results after the closing bell Tuesday.

Gold was little changed at $4,334 per troy ounce, while silver fell 0.3% to $63.45 per ounce.

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