US Stocks Waver Amid Decline in Private Payrolls
The three major averages in the US swung around the flatline on Wednesday as investors digested the latest labor market data. The ADP report showed an unexpected decline in private sector employment for June, while wage growth remained largely steady.
The data strengthens the case for potential Fed rate cuts but also raises concerns that the labor market may be cooling more quickly than anticipated. Attention now turns to the official jobs report due tomorrow. Meanwhile, traders were also monitoring developments in trade talks, with President Trump ramping up pressure on Japan.
Additionally, discussions surrounding the new spending bill remained in focus after the legislation narrowly passed the Senate and returned to the House for further consideration. On the corporate front, Microsoft shares fell nearly 0.6%, with the company announcing 9K layoffs, impacting less than 4% of the company's total workforce. In contrast, Tesla added nearly 3% as its Q2 deliveries beat estimates.
Source: Trading Economics