US markets: Wall Street opens flat amid economic uncertainty after jobs data; S&P 500 slips 0.1 per cent, Nasdaq down by 0.2%

The US Wall Street showed minimal movement on Tuesday, with mixed economic indicators providing little clarity about future interest rate directions.Early trading saw the S&P 500 decrease by 0.1%, remaining slightly below its recent record high.

At 9:35 a.m. Eastern time, the Dow Jones Industrial Average dropped 4 points, whilst the Nasdaq composite declined by 0.2%.Treasury yields remained relatively stable following initial fluctuations. Reports indicated the highest US unemployment rate since 2021, despite higher-than-expected job additions. Additionally, October's retail revenue growth exceeded economists' forecasts.These varied reports initially lowered Treasury yields. Investors initially interpreted the data as potentially influencing the Federal Reserve to prioritise addressing unemployment over inflation, possibly leading to further interest rate reductions in 2026.

However, yields subsequently fluctuated.Interest rate decisions significantly influence Wall Street, as lower rates can stimulate economic growth and investment values, despite potential inflationary risks. Thursday's upcoming inflation report is expected to show persistent consumer price increases above desired levels.The 10-year Treasury yield maintained its position at 4.18%, unchanged from Monday's close.

The two-year yield, which reflects Federal Reserve expectations, slightly decreased to 3.50% from 3.51%.The recent government shutdown might have affected the reliability of Tuesday's economic data."The report on December's employment data, released in early January ahead of the next meeting, will likely be a much more meaningful indicator for the Fed when it comes to deciding the near-term policy trajectory," according to Kay Haigh, global co-head of fixed income and liquidity solutions in Goldman Sachs Asset Management, as quoted by AP.AI-related stocks continued their mixed performance. Oracle increased by 1.1%, and Broadcom rose 1.6%, recovering from previous losses despite strong quarterly results. However, CoreWeave declined by 2.4%, whilst Nvidia decreased by 0.2%.Concerns persist about whether corporate AI investments will generate sufficient returns and productivity improvements.In other market news, Kraft Heinz shares rose 1.2% following the announcement of Steve Cahillane, former Kellanova CEO, as their new chief executive from January 1. After the company's planned split in late 2026, Cahillane will lead the division retaining key brands.Pfizer's shares dropped 1.6% after announcing expected revenue between $59.5 billion and $62.5 billion for the following year, aligning with analyst expectations.