US stocks fell again on Tuesday, extending last week’s decline as investors weighed a mixed set of labour market signals that unsettled sentiment.
The S&P 500 and Dow Jones Industrial Average both slipped 0.5%, while the Nasdaq Composite edged 0.3% lower after an early attempt to stabilise.
Attention centred on the delayed November nonfarm payrolls report. The US economy added 64,000 jobs last month, beating expectations, but the unemployment rate jumped to 4.6%, its highest level since 2021. Adding to the unease, the Bureau of Labor Statistics revised October’s figures to show a loss of 105,000 jobs.
The conflicting signals complicated the market’s outlook. Stronger hiring would normally support risk appetite, but the sharp rise in unemployment has raised concerns that the labour market may be weakening more quickly beneath the surface. That tension has fed into debate over the Federal Reserve’s path beyond this month’s meeting.
Traders are increasingly focused on what comes next. While a December rate cut remains widely expected, futures pricing points to two cuts in 2026, reflecting a view that the Fed may soon prioritise labour market risks over lingering inflation pressures.
Thursday’s consumer inflation data for November now takes on added importance. Fed Chair Jerome Powell has stressed that upcoming policy decisions will be driven by incoming data, and the combination of jobs and inflation figures will shape expectations for January and beyond.
Hopes of a year-end rally continue to fade. While some investors expect selling pressure to ease as December progresses, recent sessions suggest caution remains the dominant mood on Wall Street.