Wall Street Slows Ahead Of Critical US Jobs Data/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ US stocks drifted Wednesday, easing after record highs, as investors await Thursday’s crucial jobs report. ADP data showed surprise job losses, fueling concerns over economic momentum. Tesla climbed on strong deliveries, while tariff uncertainty continues to loom.
Quick Look
US Stocks Drift Ahead of Key Jobs Report
- S&P 500 edges up after brief pullback
- ADP report shows surprise private-sector job cuts
- Tesla gains 3.1% on strong vehicle deliveries
- Tariff uncertainty weighs on economic outlook
- Bond yields mixed as Fed decision looms
US Stocks Drift as Wall Street Pauses Before Key Jobs Report; Tesla Climbs
Deep Look
NEW YORK (AP) — U.S. stocks drifted in early trading Wednesday, as Wall Street paused its record-setting rally ahead of a crucial government jobs report due Thursday that could influence the Federal Reserve’s next moves on interest rates.
The S&P 500 was up 0.1% in morning trading, recouping some ground after snapping a two-day streak of all-time highs. The Dow Jones Industrial Average fell 131 points, or 0.3%, while the Nasdaq composite climbed 0.5% as of 10:15 a.m. Eastern.
Treasury yields were mixed as investors awaited clearer signals on the health of the labor market. The anticipation heightened after payroll processor ADP reported Wednesday that private-sector employers unexpectedly cut 33,000 jobs in June. Economists had forecast an increase of 115,000 jobs, stoking fears that Thursday’s broader government report could also disappoint.
“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” said Nela Richardson, chief economist at ADP.
However, the ADP figures don’t always align with the government’s official monthly jobs report, leaving hope that the labor market may prove sturdier than feared.
Investors remain wary that President Donald Trump’s pending tariffs on a wide range of imported goods could chill business activity. While many tariffs are currently paused, they’re scheduled to take effect within days if new trade agreements aren’t reached. Economists warn that even uncertainty about tariffs could discourage employers from hiring or expanding operations.
Other factors could weigh on the jobs data, including the recent expiration of protected immigration status for roughly 350,000 Venezuelans. That policy shift could shave an estimated 25,000 jobs from payrolls, Goldman Sachs economist David Mericle noted.
In the bond market, the yield on the 10-year Treasury edged up to 4.29% from 4.26% late Tuesday, signaling modest investor caution. Meanwhile, the two-year yield, which reflects expectations for Fed policy, slipped to 3.76% from 3.78%.
Weaker jobs numbers could nudge the Fed toward cutting interest rates sooner to help bolster the economy. So far, Fed officials have opted to wait and assess the economic fallout from Trump’s tariff threats before adjusting rates further. Trump himself has called loudly for rate cuts.
Among notable movers on Wall Street:
- Tesla rose 3.1% after the electric vehicle maker reported delivering nearly 374,000 Model 3 and Model Y vehicles last quarter. That beat analysts’ estimates, though total sales were still sharply down from a year earlier. Investor anxiety has simmered over whether Tesla’s sales might suffer from CEO Elon Musk’s outspoken political stances.
- Constellation Brands climbed 2% despite reporting weaker-than-expected earnings for its latest quarter. The maker of Modelo beer and Robert Mondavi wine said slowing hiring in sectors like construction—a key beer-drinking demographic—dampened demand. Still, the company reaffirmed its full-year guidance.
- Centene plunged 38.1% after the health insurer withdrew its profit forecast for the year, citing higher-than-expected medical costs in several states where it operates.
Overseas markets were mixed as investors tracked global trade tensions and the looming July 9 deadline for potential tariff negotiations. France’s CAC 40 gained 0.8%, while Hong Kong’s Hang Seng rose 0.6%. In contrast, Japan’s Nikkei 225 slipped 0.6%, and South Korea’s Kospi dropped 0.5%.
All eyes now turn to Thursday’s U.S. jobs report, which could either calm market nerves—or spark more volatility.
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