- U.S. stocks rose slightly on Wednesday following the release of the latest private employment data.
- Private sector payrolls increased by 150,000 last month, less than expected.
- The market will be focusing on June non-farm payrolls as the next key data point.
US stocks rose on Wednesday as traders reacted to weaker-than-expected jobs data.
The S&P 500 and Nasdaq were on track to surpass Tuesday’s record highs. Bond yields fell 3 basis points to 4.4%.
Private payrolls rose by just 150,000 last month, below the 160,000 that economists had expected, according to ADP data. Wage growth also slowed to 4.9%, the slowest pace since 2021.
“Job gains have been solid but not broad-based,” ADP chief economist Nella Richardson said in a statement. “Without the leisure and hospitality employment recovery, June would have been a weak month.”
The slowing pace of hiring could strengthen the case for the Federal Reserve to cut interest rates later this year, but it also raises doubts about whether the U.S. can achieve the soft landing Wall Street hopes for.
According to the CME FedWatch tool, the market is pricing in one or two rate cuts by the end of the year, but the Fed is widely expected to keep rates in the 5.25% to 5.50% range at its policy meeting this month.
Investors will close after the close on Wednesday due to the Independence Day holiday. Markets will reopen on Friday, with attention focused on June nonfarm payrolls as the next big jobs data that could sway the direction of Fed policy.
Below are U.S. stock indexes as of the start of trading at 9:30 a.m. on Wednesday.
Commodities, Bonds and Cryptocurrencies:
- West Texas Intermediate crude rose 0.30% to $83.06 a barrel, while the international benchmark Brent crude rose 0.27% to $86.47 a barrel.
- Gold rose 0.86% to $2,349 per ounce.
- The yield on the 10-year Treasury note fell 3 basis points to 4.401%.
- Bitcoin fell 4.19% to $60,152.
