U. S. stocks rose on Wednesday as investors priced in weaker-than-expected jobs data.
The S
ADP data showed that staff-sector payrolls rose to 150,000 last month, less than the 160,000 jobs expected by economists. Wage expansion also slowed to 4. 9%, the smallest wage increase since 2021.
“Employment expansion has been robust, but broad-based,” Nela Richardson, chief economist at ADP, said in a statement. “Without an uptick in hiring in the recreational and hospitality sector, June would have been a bleak month. “
A slower rate of trading could be the justification for the Federal Reserve to cut interest rates later this year, but it also casts doubt on the United States’ ability to achieve the comfortable landing Wall Street had hoped for.
Markets are pricing in one or two rate cuts until the end of the year, but generally expect the Federal Reserve to keep interest rates in the 5. 25% to 5. 50% range at this month’s policy meeting, according to the CME FedWatch tool.
Investors will close their doors at the end of Wednesday’s session, on the occasion of Independence Day. Markets will reopen on Friday, when all eyes will be on the June nonfarm payrolls report, the next key jobs data that could signal the Fed’s policy stance. .
Here’s where the US indices were a little while after the opening bell at 9:30 a. m. Wednesday:
Nasdaq Composite: 18,034. 55, up 0. 03%
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In commodities, bonds, and cryptocurrencies:
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