The Dow ends its winning streak after the Fed’s Beige Book reports sluggish economic growth and rising input costs across U.S. business sectors
On Wednesday, U.S. stocks concluded in a mixed manner, as a cautious economic outlook from the Federal Reserve’s Beige Book and a lackluster private payrolls report exacerbated concerns regarding inflation, growth, and tariffs.
The Dow Jones Industrial Average ended its four-day winning streak by closing down by 91.90 points, or 0.22%. The Nasdaq Composite was up 0.32% to close at 19,460.49, while the S&P 500 remained nearly unchanged.
The ADP employment report, which was weaker than anticipated, significantly impacted the sentiment of the stock market during Wednesday’s trading session.
The report indicated that private payrolls increased by only 37,000 in May, considerably lower than the projected increase. The Federal Reserve may be compelled to reduce interest rates due to the reading, which is released before the nonfarm payrolls data on Friday.
The 10-year Treasury yield has decreased to 4.349%, the lowest level since early May.
The Federal Reserve’s Beige Book indicates that growth is diminishing and that price pressures are increasing.

On Wednesday morning, the Federal Reserve’s Beige Book, which was released, indicated a “slight decline” in U.S. economic activity over the previous six weeks, further complicating the economic outlook.
Due to the increased policy uncertainty emanating from Washington and tariff-related cost pressures, business owners postponed their expansion plans, resulting in a largely stagnant hiring activity.
The Federal Reserve noted that “all Districts reported elevated economic and policy uncertainty levels.” The report also referenced “widespread reports of contacts anticipating a faster rate of increase in costs and prices in the future.”
The Beige Book contained 122 mentions of tariffs, an increase from 107 in April.
Businesses in numerous regions, including Philadelphia and New York, reported increased input costs. To mitigate input surges, specific organizations anticipate decreased profit margins or the imposition of additional expenses on consumers.
Boston, New York, and Philadelphia experienced declining levels of activity. Nevertheless, Richmond, Atlanta, and Chicago experienced only modest expansion. In general, the Federal Reserve discovered that employment activity was cautious, even in more robust districts.