Dow, S&P 500 Fall For Third Straight Day Following Jobs Report

04:49 PM EST, 12/16/2025 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 fell for a third straight session on Tuesday as traders reacted to fresh employment data that showed the unemployment rate hitting a four-year high.

The Dow shed 0.6% to 48,114.3, while the S&P 500 dipped 0.2% to 6,800.3. The Nasdaq Composite rose 0.2% to 23,111.5, rebounding after a three-day decline.

Most sectors ended in the red, led by a 3% slump in energy, while technology logged the biggest gain along with consumer staples.

In economic news, total nonfarm payrolls in the US rose by 64,000 in November, delayed data from the Bureau of Labor Statistics showed. 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 BLS also published a partial update for October, showing payrolls fell by 105,000 due to a sharp decline in government jobs.

"This is a soft outcome overall, with nonfarm payrolls growth averaging just (22,000) over the past three months," James Knightley, ING chief international economist in New York, said in a report. "Given (Federal Reserve) Chair Jerome Powell's comments last week that they think payrolls are being overestimated by (60,000) per month, it indicates that the Fed is now effectively acknowledging the economy is losing jobs, which will push the doves to continue making the case for rate cuts."

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

"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."

Markets price 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

US Treasury yields were lower, with the 10-year rate down three basis points at 4.15% and the two-year rate dropping 2.3 basis points to 3.49%.

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 2.8% to below $59 in late-afternoon trade, having hit as low as $58.72 earlier in the day. West Texas Intermediate was down 3% at $55.14 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 fell 3.4%.

Estee Lauder (EL) was among the biggest gainers on the S&P 500, up 3.3%, as Evercore ISI raised its price target on the cosmetics company's stock to $125 from $115 while maintaining an outperform rating.

Gold was down 0.1% at $4,332 per troy ounce, while silver fell 0.2% to $63.69 per ounce.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.