U.S. stock markets were trading mixed this Wednesday, as investors followed new statements from Kevin Warsh, a member of the Federal Reserve, and assessed economic indicators that could influence upcoming decisions on interest rates.
During the session, the S&P 500 was up 0,10%, at 7.507,03 pontos, while the Dow Jones Industrial Average rose 0,26%, reaching 52.457,84 pontos and renewing intraday highs. Meanwhile, the Nasdaq Composite fell 0,41%, to 26.105,87 pontos, pressured mainly by technology stocks. Among the other indicators, the Russell 2000 was up 0,49%, at 3.039,18 points, while the volatility index VIX fell 2,67%, to 16,01 points. In the commodities market, gold rose 1,67%, quoted at US$ 4.106,00.
Investors reacted to Warsh's remarks during a forum organized by the European Central Bank (ECB) in Portugal. Although the official did not signal any indication about the next moves in monetary policy, he again highlighted the need to control inflation by stating that "prices are very high".
The remarks helped ease part of the pressure seen at the beginning of the session, but the market remains attentive to upcoming economic indicators to assess when the Federal Reserve may reduce interest rates.
Among the data released this Wednesday, the ADP report showed that the private labor market lost strength in June. A total of 98 thousand jobs, a result below analysts' expectations and which reinforced the perception of a gradual slowdown in the U.S. economy.
Another survey, prepared by Challenger, Gray & Christmas, indicated that U.S. employers announced just under 46 thousand layoffs last month. Despite representing a slight decline compared with the same period of the previous year, the numbers continue to be closely monitored by investors.
These indicators increase expectations for the release of the official U.S. employment report for the month of June, scheduled for Thursday due to the July 4 holiday. The document is considered one of the main parameters used by the Federal Reserve to assess the strength of the labor market and define the direction of monetary policy.
In the energy market, oil was trading lower after the failure of the peace negotiations held in Qatar. Iran said that its representatives would not meet with members of the team of current U.S. president Donald Trump, reducing expectations of an agreement capable of contributing to the normalization of global oil supply.
As a result, Brent futures contracts were trading below US$ 72 per barrel, while WTI remained below US$ 69, posting losses close to 1% during the session. The behavior of commodities remains on investors' radar, since fluctuations in energy prices may influence the outlook for inflation and, consequently, the Federal Reserve's next steps.