Wall Street opens mixed as weak jobs data boosts Fed cut bets

Investors digested weak ADP payrolls and higher jobless claims, which bolstered expectations of a Federal Reserve rate cut later this month ahead of Friday’s key jobs report.

US stocks opened mixed on Thursday as investors parsed fresh signs of labor market weakness ahead of Friday’s closely watched jobs report.

The S&P 500 rose 0.1% in early trading, while the Nasdaq Composite added 0.3%. The Dow Jones Industrial Average slipped 76 points, or 0.2%.

Economic data continued to highlight softening momentum in hiring. The ADP private payrolls report showed US companies added just 54,000 jobs in August, missing the 75,000 expected and falling from July’s revised 106,000 gain. Weekly jobless claims also climbed to 237,000, above estimates and up 8,000 from the previous week.

The numbers reinforced investor bets that the Federal Reserve will deliver a rate cut at its September 17 meeting. Fed funds futures now imply a 97.6% probability of a cut, up from 96.6% a day earlier, according to CME Group’s FedWatch tool.

Meanwhile, the ISM non-manufacturing PMI for August came in at 52.0, slightly above the 50.8 consensus forecast, suggesting modest resilience in services activity.

Traders are also keeping watch on Washington after President Donald Trump asked the Supreme Court to fast-track a ruling on tariffs, seeking to overturn decisions that deemed most levies illegal.

Global Market

Japan’s Nikkei 225 led regional gains with a 1.5% rally, supported by tech shares such as SoftBank and Advantest, while South Korea’s Kospi and Australia’s ASX also closed higher. Indian equities advanced sharply, with the Sensex climbing 1.1% and Nifty crossing fresh highs, driven by GST cuts that boosted auto and FMCG stocks. In contrast, Chinese markets slumped, with the CSI 300 down 2.6%, the Shanghai Composite slipping 1.3%, and the Hang Seng losing 1.1% amid renewed concerns over regulatory pressures in the tech sector.

Germany’s DAX rose 0.7% and London’s FTSE 100 added 0.5%, while France’s CAC 40 edged 0.1% lower. Sentiment improved after a smooth Japanese bond auction eased global bond market worries, while expectations of a Federal Reserve rate cut later this month underpinned risk appetite across the region.

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