The U.S. Stocks fall after delayed jobs figures paint weak picture of economy

Stocks fell on Tuesday as traders digested the delayed release of the November’s jobs report.

The S&P 500 dropped 0.7%, while the Nasdaq Composite traded down 0.4%. The Dow Jones Industrial Average declined 369 points, or 0.8%.

U.S. crude oil also came under significant pressure on Tuesday, falling below $55 per barrel to reach its lowest level since early 2021. Energy stocks suffered losses along with it. Shares of oil majors Exxon Mobil and Chevron dropped roughly 2% each. Others such as ConocoPhillips and Marathon Petroleum were in the red as well.

Earlier Tuesday, November’s jobs report came in better than expected, showing an increase of 64,000 jobs for the month, according to the Bureau of Labor Statistics. Economists surveyed by Dow Jones predicted that nonfarm payrolls would grow by 45,000 in the period.

However, the BLS reported that October shed 105,000 jobs. The unemployment rate also increased to 4.6%, which was above the Dow Jones forecast for 4.5%, raising concerns about the state of the U.S. economy.

Odds of a Fed rate cut next month didn’t change following the latest jobs figures, as the CME FedWatch Tool showed little chance of another reduction in January. Fed funds futures traders are currently pricing in a 24% chance of a rate cut next month, the same as the day before.