Data showed on Tuesday that U.S. labor costs rose by a more-than-expected 1.2% last quarter, indicating an uptick in wage pressures. A survey also found that U.S. consumer confidence worsened in April, dropping to its lowest level in more than 1-1/2 years.
The ADP National Employment report showed U.S. private payrolls increased more than expected in April, while a separate reading showed U.S. manufacturing contracted in April. A measure of prices paid by factories for inputs approached a two-year high.
US labour costs increased in the first quarter amid a rise in wages and benefits, confirming the surge in inflation early in the year that will likely delay a much-anticipated interest rate cut later in 2024. On the earnings front, GE HealthCare lost 9.6% after the medical equipment firm missed estimates for first-quarter revenue, while McDonald s fell 0.9% as it missed profit estimates for the first time in two years.