US markets moved in different directions on Wednesday as investors weighed fresh labor data against President Trump’s surprise Venezuela oil agreement, while attention builds toward Friday’s key jobs report.
The Nasdaq Composite led gains, rising around 0.4%, supported by strength in large-cap technology. The S&P 500 hovered near flat but remained close to record highs, while the Dow Jones Industrial Average fell about 0.6%, easing back after recently approaching the 50,000 milestone.
Oil Drops After Venezuela Announcement
Markets reacted to new energy headlines after Donald Trump said Venezuela would relinquish and ship up to 50 million barrels of crude to the US. Energy Secretary Chris Wright later added that the administration plans to indefinitely control Venezuela’s oil sales.
Crude prices extended early-year losses following the comments:
- WTI crude slipped below $57 per barrel
- Brent crude fell toward $60 per barrel
The move added pressure to energy stocks and contributed to the Dow’s underperformance on the day.
Labor Data Sets the Stage for Friday
Attention also turned to the labor market. ADP’s private payrolls report showed 41,000 jobs added in December, slightly below expectations and reinforcing signs that hiring cooled late in 2025.
The data comes ahead of Friday’s December jobs report, which investors see as a crucial test for whether the economy is slowing enough to influence policy at the Federal Reserve. Markets will also review JOLTS job openings, quits, and layoffs for further clues on labor market momentum.
Tech Holds Up, Nvidia in Focus
Tech stocks continued to attract interest as CES 2026 unfolds, with debate intensifying over whether AI enthusiasm is overheating or entering a second growth phase. Nvidia rose more than 1%, as analysts split on whether the stock is nearing a peak or still has room to run.
What Investors Are Watching Next
With economic data flows returning to normal after recent disruptions, markets are increasingly sensitive to each new release. Friday’s jobs report could shape expectations for rate moves in the months ahead and determine whether the S&P 500 can extend its record-setting run or face near-term pressure.
For now, Wall Street remains in wait-and-see mode, balancing cooling labor signals, energy market shocks, and tech-driven optimism as 2026 trading gains momentum.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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