US stocks diverged on Tuesday, Tesla (TSLA) stock hitting a new record at the same time that the Dow and S&P 500 slumped as investors saw a mixed picture from updates on the labor market. The delayed November jobs report showed an uptick in jobs added last month but also found the unemployment rate jumped to a 2021 high.
The tech-heavy Nasdaq Composite (^IXIC) climbed 0.2% as Tesla shares closed at their first record in a year on the heels of recent robotaxi advancements. Meanwhile, the S&P 500 (^GSPC) dropped 0.2%, while the blue chip-heavy Dow Jones Industrial Average (^DJI) shed 0.6%, or 300 points.
All eyes on Wall Street turned to the latest monthly employment figures on Tuesday morning. The late-arriving November nonfarm payrolls report from the Bureau of Labor Statistics showed the US economy added 64,000 jobs last month, more than expected. But the unemployment rate rose to 4.6%, in a potential warning sign for a market already showing some cracks. Also, the BLS said October’s print showed a loss of 105,000 jobs.
The report will add fuel to the fire on the big year-end debate over whether the Federal Reserve will halt or hasten policy easing in 2026. A plurality of traders is betting on two rate cuts from the Fed next year, as policymakers focus on tackling the labor market rather than dealing with sticky inflation.
The jobs data sets the stage for another release on Thursday, with consumer inflation numbers for November set for an unveiling. Together, the two reports make up a chunk of the “great deal of data” Fed Chair Jerome Powell has flagged the central bank will study before its next rate decision in January.
In corporates, Ford (F) was in focus said it would take a $19.5 billion charge as part of a pivot away from electric vehicles.
