US stocks were little changed on Thursday as investors weighed weak private payrolls data and prepared for Friday’s closely watched jobs report.
The S&P 500 rose 0.2%, while the Nasdaq Composite added 0.3%.
The Dow Jones Industrial Average slipped 30 points, or 0.1%, dragged lower by a 7% drop in Salesforce after the software maker issued a downbeat revenue outlook.
ADP reported private payroll growth of 54,000 in August, below the 75,000 expected by economists polled by Dow Jones and well under the revised 106,000 in July.
The muted reaction on Wall Street reflected the view that the data was weak enough to support a Federal Reserve rate cut in September, but not so soft as to signal a recession.
CME Group’s FedWatch tool showed markets pricing in a 97.4% probability of a cut at the Fed’s Sept. 17 meeting, up from 96.6% a day earlier.
Weekly jobless claims added to signs of slowing momentum. Initial filings rose by 8,000 to 237,000 in the week ended Aug. 30, exceeding expectations and pointing to a softer labour market.
The government’s August nonfarm payrolls report is due Friday, with economists looking for an increase of 75,000 jobs.
Markets are also watching Washington, where President Donald Trump formally asked the Supreme Court to expedite its review of an appeal seeking to overturn rulings that deemed most of his tariffs unlawful.
Trump takes tariff fight to the Supreme Court
President Donald Trump has formally asked the Supreme Court to review a lower court’s decision that struck down most of his tariffs as unlawful.
The move escalates the White House’s effort to defend its trade agenda, which an appeals court last week ruled exceeded the president’s authority. Trump has insisted the nation’s highest court will back him.
Treasury Secretary Scott Bessent, in a declaration attached to the filing, argued that the lower court’s decision “gravely undermines the President’s ability to conduct real-world diplomacy and his ability to protect the national security and economy of the United States.”
Private jobs data
US private sector hiring slowed sharply in August, underscoring signs of strain in the labour market.
Private payrolls rose by 54,000 during the month, according to data from payroll processor ADP released Thursday.
That fell short of the 75,000 increase forecast by economists in a Dow Jones survey and marked a steep drop from the revised 106,000 gain in July.
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Nela Richardson, ADP’s chief economist.
She cited rising consumer worries, labour shortages and disruptions tied to artificial intelligence as key factors behind the weaker trend.
The data showed particular softness in trade, transportation and utilities, which shed 17,000 positions in August.
Education and health services also posted losses, with payrolls down by 12,000.
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