United States benchmarks closed mixed on Wednesday (Thursday AEST) after private sector employment data revealed the slowest hiring pace in over two years, clouding optimism around the U.S. economy and injecting fresh uncertainty into markets already grappling with trade policy shifts.
The Dow Jones Industrial Average fell 91.9 points, or 0.2%, to finish at 42,427.7, snapping a four-session winning streak. The S&P 500 ended flat at 5,970.81, while the tech-heavy Nasdaq Composite gained 61.5 points, or 0.3%, to settle at 19,460.5.
The latest employment figures from payrolls firm Automatic Data Processing (ADP) showed private sector payrolls rose just 37,000 in May, well below April’s downwardly revised 60,000 and significantly under the market consensus of 115,000.
The result cast a shadow over Friday’s upcoming nonfarm payrolls report, which economists currently forecast will show a 130,000-job gain.
Shortly after the ADP data was released, President Donald Trump took aim at Federal Reserve Chair Jerome Powell on social media, writing, “ADP NUMBER OUT!!! “Too Late” Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”
In a separate post, Trump also criticised Chinese President Xi Jinping, saying, “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”
Wall Street had been buoyed in recent sessions by strong gains in the technology sector, helping offset concerns about trade tensions and economic softness.
Market sentiment had improved following signs that the White House may be using tariff threats primarily as a negotiating tactic.
Investors now turn their attention to Friday’s official nonfarm payrolls report, a key data point that could shape expectations for future Fed policy action.
On the bond markets, the 10-year Treasury yield dropped 2.3% to 4.357%, while the 2-year yield fell 2.2% to 3.869%, both hovering near three-week lows.
