U.S. stocks ended a volatile session on Wednesday with little change, as investors grappled with conflicting jobs data and speculation about President-elect Donald Trump’s potential economic policies.

Jobs Data Sparks Uncertainty
Private payrolls growth slowed sharply in December, according to ADP, while the Labor Department reported a decline in weekly jobless claims. Investors now await Friday’s December employment report for further clarity.

Inflation and Tariff Fears Loom
Reports that Trump is considering invoking a national economic emergency to address inflation heightened market anxiety. Using the International Economic Emergency Powers Act, such a move could impose new tariffs, stoking inflationary pressures.

“Inflation is the wild card in 2025,” said Allianz’s Charlie Ripley, emphasizing potential risks tied to Trump’s policy agenda. 

Fed in Focus
Minutes from the Fed’s December meeting revealed concerns about sticky inflation and the uncertain impact of Trump’s policies. Traders now anticipate the Fed’s first rate cut of 2025 by May or June, according to CME’s FedWatch Tool.