Wall Street Slips Again as Jobs and Retail Data Disappoint: Key Market Moves and Fed Speculation

• Why Is Wall Street Under Pressure?
• What Did the Jobs Report Reveal?
• How Did Retail Sales and PMIs Perform?
• What’s Next for the Fed?
• Corporate Highlights: Ford, Tesla, and Pfizer
• Key Events Ahead
• Market Outlook

Wall Street extended its losses on Tuesday as tech valuations continued to deflate and mixed economic data weighed on sentiment. The S&P 500 dipped 0.36%, while the Dow Jones and Nasdaq fell 0.38% and 0.13%, respectively. November’s jobs report showed stronger-than-expected non-farm payrolls (64K vs. 40K consensus), but unemployment ticked up to 4.6%. Retail sales were flat, missing forecasts. Meanwhile, Fed leadership rumors swirled as TRUMP floated Kevin Hassett and Kevin Warsh as potential successors to Jerome Powell. In corporate news, Ford announced a $19.5B write-down on EV investments, while Tesla gained on robotaxi optimism. Here’s a deep dive into the day’s market-moving events.

Why Is Wall Street Under Pressure?

U.S. stocks extended their decline for a second straight session, with the S&P 500 shedding 0.36% to 6,792 points. The Dow Jones Industrial Average lost 0.38% (48,233 pts), and the Nasdaq Composite slipped 0.13% (23,028 pts). Tech stocks, already bruised by last week’s selloff in AI heavyweights like Oracle and Broadcom, remained under pressure. WTI crude oil dropped 2.8% to $55/barrel, while Gold edged up 0.5% to $4,327/oz. The dollar index dipped 0.2%.

What Did the Jobs Report Reveal?

November’s non-farm payrolls surprised to the upside at 64,000 (vs. 40K expected), but revisions painted a weaker picture: August’s job losses were revised to -26K (from -4K), and September’s gains were trimmed to +108K (from +119K). Private-sector hiring beat expectations (69K vs. 45K), but wage growth slowed to 3.5% YoY. The unemployment rate unexpectedly ROSE to 4.6% (consensus: 4.4%), with the Labor Department citing lower survey response rates and statistical weighting adjustments due to missing October data.

How Did Retail Sales and PMIs Perform?

October retail sales were flat MoM (+0.4% ex-autos), matching consensus. Preliminary December PMIs missed estimates but stayed in expansion territory (composite: 53 vs. 54.2 in November; services: 52.9 vs. 53.9 consensus). Manufacturing PMI dipped to 51.8 (vs. 52 expected).

What’s Next for the Fed?

With a January rate cut priced at 24.4% probability (per CME FedWatch), attention turned to leadership speculation. Trump named ex-Fed Governor Kevin Warsh and NEC Chair Kevin Hassett as top candidates to replace Powell, emphasizing his desire for lower rates. Treasury Secretary Scott Bessent confirmed both are qualified, expecting an appointment by early January.

Corporate Highlights: Ford, Tesla, and Pfizer

took a $19.5B charge on underperforming EV models, pivoting toward hybrids and affordable EVs.gained earlier on robotaxi test footage from Austin.guided 2026 EPS below consensus ($2.80-$3 vs. $3.05) as COVID product sales wane.

Key Events Ahead

• Wednesday: November retail sales, Atlanta Fed’s expectations index; speeches by Fed’s Williams and Bostic.
• Thursday: November CPI (consensus: +0.3% MoM, +3.1% YoY), Philly Fed manufacturing.
• Friday: Quadruple witching day; Michigan consumer sentiment.

Market Outlook

With year-end volatility looming, analysts caution that the "Santa Rally" may hinge on inflation data and Fed signals. As the BTCC team notes, "The jobs report’s mixed signals keep rate-cut hopes alive, but sticky inflation could delay the pivot."