US stocks fluctuated on Thursday as investors reacted to weaker-than-expected labor market data.
The upcoming jobs report could shape the Fed’s next interest rate decision and provide crucial insights into the economy’s trajectory.
The S&P 500 dipped 0.3%, while the Dow Jones Industrial Average dropped over 200 points, or 0.5%.
The Nasdaq Composite, riding a tech wave, swung between gains and losses before closing up by 0.2%.
Wednesday’s mixed session marked a sluggish start to September, signaling continued market volatility.
New figures from ADP showed private employers added just 89,000 jobs in September, the slowest growth since January 2021—well below expectations.
Additionally, unemployment claims dipped slightly, while job openings also saw a notable decline.
These numbers serve as a prelude to Friday’s highly anticipated jobs report, a critical data point for the Federal Reserve’s next policy decision.
With mixed signals swirling, investors are caught between hope and hesitation.
Softer job data raises the prospect of interest rate cuts, but it also casts shadows of a potential recession, as hopes for a “soft landing” seem to dim.
Currently, traders are split, with nearly even odds on whether the Fed will reduce rates by 0.5% in September.
In the business sector, AI continued to be a mixed bag. C3.ai shares tumbled 8% after disappointing subscription revenue, and HPE stock also slipped due to underwhelming profitability.
Tesla, meanwhile, pared its early gains, rising nearly 5% on news that it plans to push ahead with Full Self-Driving software in China and Europe, pending regulatory approval.
As Wall Street grapples with conflicting economic signals, all eyes turn to Friday’s jobs report—a potential game-changer for both markets and monetary policy.
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