Wall Street Stays Steady Amid Weak Job Signals/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks held mostly steady Thursday as investors await Friday’s key jobs report that may influence Federal Reserve policy. Signs of a slowing labor market have pushed Treasury yields down and increased hopes for rate cuts. Major indexes fluctuated slightly, with the Nasdaq leading early gains.
Wall Street Holds Steady Quick Looks
- S&P 500 rose 0.2%, Nasdaq up 0.4%, Dow dipped 45 points
- Bond yields fell after weak hiring and jobless claims data
- Fed rate cuts more likely if slowdown continues
- ADP suggests private hiring nearly halved in August
- July jobs report saw major downward revisions
- American Eagle surged 31.5% after strong earnings tied to Sydney Sweeney campaign
- Salesforce fell 7.4%, C3.ai dropped 9% on disappointing earnings
- Global markets mixed: losses in China, gains in Japan
- 10-year Treasury yield dropped to 4.19% from 4.22%
- Markets await Labor Department’s August jobs report Friday
Wall Street Stays Steady Amid Weak Job Signals
Deep Look
NEW YORK (AP) — Wall Street remained relatively stable Thursday morning, as investors digested fresh evidence that the U.S. labor market is losing momentum, increasing the likelihood that the Federal Reserve could begin cutting interest rates.
The S&P 500 rose by 0.2%, the Nasdaq Composite climbed 0.4%, and the Dow Jones Industrial Average slipped by 45 points, or 0.1%, shortly after markets opened.
Bond markets reacted immediately to the data, with the 10-year Treasury yield falling to 4.19% from 4.22% the previous day, as softer labor data typically boosts demand for bonds and raises expectations for lower future interest rates.
Slowing Labor Market Prompts Fed Speculation
Two key reports Thursday morning added to a growing body of evidence suggesting that the job market is cooling:
- ADP’s private payroll report showed hiring was nearly cut in half last month.
- Unemployment claims rose more than expected, indicating an uptick in layoffs.
While neither signal suggests the economy is entering a recession, the data supports the narrative that employment growth is decelerating, giving the Federal Reserve a potential opening to ease monetary policy for the first time this year.
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Nela Richardson, chief economist at ADP. She cited factors like labor shortages, consumer caution, and the rapid rise of AI-driven disruption as contributors to the slowdown.
Markets are now heavily focused on the U.S. Labor Department’s August jobs report, scheduled for release Friday morning. Analysts expect the economy added just 80,000 non-farm jobs, continuing the trend of weaker-than-anticipated employment data.
Trump Administration Reacts to July Report Fallout
July’s jobs report, which included substantial downward revisions to May and June data, had a strong political impact. The weaker figures sent markets into a brief spiral and led President Donald Trump to fire the head of the federal agency responsible for compiling employment data.
The upcoming August report may now carry even more weight as the Fed prepares for its September 16–17 policy meeting, where a rate cut is now increasingly on the table.
Wall Street Winners and Losers
Salesforce (CRM) was among Thursday’s notable decliners, despite reporting stronger-than-expected profits. Analysts cautioned that some of the gains may have been driven by one-time items, and the company’s shares dropped 7.4% in early trading.
C3.ai, the artificial intelligence software company, fell 9% after posting a wider-than-expected loss. Chairman Thomas Siebel called the results “completely unacceptable” and announced a leadership shake-up, naming Stephen Ehikian, a former government official, as the new CEO.
On the upside, American Eagle Outfitters (AEO) soared 31.5%, easily topping quarterly earnings expectations. The teen-focused retailer benefitted from an edgy, viral ad campaign featuring actor Sydney Sweeney, sparking intense media attention and sales momentum.
The campaign, built around the line “Sydney Sweeney has great jeans,” triggered public debate around beauty standards, marketing ethics, and reactions to “woke” culture, further elevating the brand’s visibility.
Hewlett Packard Enterprise added 1% following its own strong earnings report.
Global Markets React to U.S. Trends
International markets were mixed:
- Japan’s Nikkei 225 surged 1.5%, closing at 42,580.27
- Shanghai Composite Index fell 1.3%
- Hong Kong’s Hang Seng dropped 1.3%
- European markets were stable with modest gains in Germany and the UK
Investors abroad are closely monitoring U.S. economic signals, especially since global growth is also under strain due to trade tensions, currency fluctuations, and geopolitical instability.
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