The Dow Jones industrial Average shed 0.19 per cent, to end at 36,054.43, the S&P 500 lost 0.39 per cent to 4,549.34, while the Nasdaq Composite declined 0.58 per cent to 14,146.71

U.S. stocks pulled back on Wednesday as investors evaluated data suggesting falling inflation and the jobs report loomed.

The Dow Jones industrial Average shed 70.13 points, or 0.19 per cent, to end at 36,054.43. The S&P 500 lost 0.39 per cent to 4,549.34, while the Nasdaq Composite declined 0.58 per cent to 14,146.71. It was the third losing day for the Dow and the S&P 500 — the first since October for both indexes.

Stocks shed earlier advances, with the Dow up around 170 points at its session high. All three indexes traded above as well as below their respective flatlines in the choppy session.

The market initially got a morning boost following economic data. A decline in labour costs boded positively for the path of inflation, while a surge in productivity indicated the potential for the economy to skirt a recession. November private payroll data from ADP offered the latest indication that the job market, long considered a pain point for the Fed, was easing.

ADP’s payroll data shows the Fed’s anti-inflation measures are now taking effect, said David Russell, global head of market strategy at TradeStation. The figures point toward a soft landing, but investors may start to worry about a recession if policy remains too hawkish. It is the Federal Reserve’s battle to lose at this point.

But Wednesday’s ADP report is just one in a series of labour-focused data releases traders are weighing over the course of the week. On Tuesday, Labor Department figures showed job openings in October dropped to the lowest level since March 2021. Investors will monitor jobless claims numbers on Thursday before turning attention to widely followed data on November nonfarm payrolls, wages and the unemployment rate due Friday.