Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) fell from their respective intraday highs as investors digested soft labor market data and two surprising announcements from President Trump. SPY finished in negative territory, while QQQ closed slightly higher.
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The stock market faced pressure after the Job Openings and Labor Turnover Survey (JOLTS) showed 7.146 million job openings in November, well below the consensus estimate of 7.648 million and falling from 7.449 million in the prior month. In addition, the hiring rate dropped to 3.2% from 3.4%. “The United States is in a hiring recession,” said Navy Federal Credit Union Chief Economist Heather Long in an X post. “Virtually no jobs added since April outside of healthcare.”
Defense stocks faced pressure in the afternoon after President Trump ordered a halt to dividends, stock buybacks, and excessive executive compensation within the industry. He encouraged defense companies to instead prioritize investment in manufacturing plants, equipment, and research and development. Furthermore, Trump said that defense executives will have their annual compensation capped at $5 million until the speed of military equipment production increases.
“Therefore, I will not permit Dividends or Stock Buybacks for Defense Companies until such time as these problems are rectified — Likewise, for Salaries and Executive Compensation,” Trump said in a Truth Social post. He also criticized defense companies for using government subsidies and debt to build equipment.
Institutional landlords were next to be hit, as Trump blamed them for contributing to the housing crisis and ordered a ban on large institutional investors from buying single-family homes. A large institutional investor is generally described as owning 1,000 or more properties. Stocks like Blackstone (BX), Invitation Homes (INVH), and American Homes 4 Rent (AMH) tumbled following the announcement.
Finally, geopolitical tensions are on the rise as Trump continues to express interest in acquiring Greenland. Earlier this week, White House Press Secretary Karoline Leavitt noted that the administration is “discussing a range of options” and hasn’t ruled out military force. At the same time, Secretary of State Marco Rubio sought to downplay military action in a private meeting with lawmakers and expressed interest in buying the autonomous territory, according to the Wall Street Journal. Trump has previously pushed to annex Greenland for its strategic location, critical mineral resources, and low population.
The S&P 500 (SPX) closed with a 0.34% loss, while the Nasdaq 100 (NDX) returned 0.06%.
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