U.S. stocks opened largely unchanged on Thursday, as investors digested the latest jobs data showing slower private payroll growth. The Dow Jones Industrial Average hovered near the flatline, while the S&P 500 rose 0.1% and the Nasdaq Composite added 0.2%, following Wednesday’s mostly steady close.
Early in trading, the Dow briefly turned positive after futures had dipped, creating some early pressure for bulls. However, the index settled near unchanged as the U.S. stocks market considered August’s private payroll figures.
Market Snapshot
- Bitcoin traded around $110,800.
- Gold hovered near $3,617 per ounce, down 0.5%, though analysts at Goldman Sachs predict it could rise to $4,000 this year if buying pressure continues.
- U.S. Treasury yields fell, with the 10-year at 4.19% and the 30-year at 4.78%.
Weak Labor Market Weighs on Stocks
The August ADP report showed private payrolls increased by only 54,000 jobs, falling short of economists’ expectations of 75,000. This is a notable drop from July’s revised gain of 106,000, signaling ongoing softness in the U.S. labor market.
Investors are taking the weak data as a sign of potential economic challenges, with speculation mounting that the Federal Reserve may cut interest rates at its September meeting. The CME FedWatch tool currently shows a 97.4% chance of a rate cut, up sharply from recent weeks.
Attention now turns to the official August jobs report, scheduled for release on Friday, which will provide further insight into the labor market and guide expectations for the Fed’s next moves.
