U.S. stocks open flat amid weak private payrolls data
Dow Jones Industrial Average hovered largely flat as U.S. stocks traded unchanged in early deals on Thursday, with Wall Street assessing the latest jobs data that showed a decrease in private payroll growth.
- Dow opened flat as ADP report showed private payrolls fell last month.
- Wall Street expects Federal Reserve to cut rates this month.
The benchmark index S&P 500 was up 0.1% and Nasdaq Composite gained just 0.2% to see stocks open flat following Wednesday’s largely unchanged close.
Meanwhile, the Dow Jones Industrial Average flipped briefly green after futures had dipped, putting pressure on bulls early Thursday, but as the market weighed the August private payrolls data, the blue-chip index hovered near the flatline.
Cryptocurrencies also struggled as Bitcoin (BTC) changed hands near $110,800. Gold hovered around $3,617 per ounce, down by 0.5% but analysts at Goldman Sachs forecast a yearly rally to $4,000 if buying pressure persists.
Elsewhere, yields fell, with the 10-year U.S. Treasury yield at 4.19% and the 30-year yield at 4.78%.
Weak labor market
Stocks traded near the flatline after the August private payrolls report showed an increase of only 54,000, compared to economists’ estimates of 75,000 jobs.
Analysts pointed to the data as indicative of U.S. labor market froth, particularly as the reading showed a marked decrease from the revised figure of 106,000 in July. Data firm ADP published the report Thursday morning.
With the ADP jobs report marking continued labor market weakness, this coming after government’s July jobs openings data also indicated trouble, investors are ramping up bets on the Federal Reserve cutting interest rates this month.
Ahead of the Fed’s September meeting, CME’s FedWatch tool shows Wall Street has increased odds of a Fed cut to 97.4%, up from significantly in the past few weeks.
The market is now looking forward to the August jobs report set for release on Friday.
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