Wall Street edges down on surprise US jobs data
The ADP National Employment Report showed US private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought.
Investors quickly increased their bets of a rate cut by the US Federal Reserve in July to 25.3 per cent from about 20 per cent prior to the report, according to LSEG data.
"I take it as a mixed bag. On one hand, the wage is still strong, which is terribly important to the US economy. On the downside, if this isn't seasonality, this is the beginning of a long-term trend in white collar jobs that'll spill over into the total labour market," said Ross Mayfield, investment strategist at Baird.
"It would be very damaging for the overall economy and obviously make the Federal Reserve react despite their concerns about tariffs causing inflation."
The Nasdaq and the S&P 500 closed lower in the previous session, retreating from record highs as technology stocks were pressured and Treasury yields climbed after data showed stronger-than-expected job openings in May.
Focus now turns to the more comprehensive non-farm payrolls report, scheduled for release on Thursday - a day earlier than usual, as markets are closed on Friday for Independence Day.
The reading is expected to show US job growth cooled in June and the unemployment rate ticked up to 4.3 per cent, according to a Reuters poll of economists.
On trade, Trump said on Tuesday he was not thinking of extending the July 9 deadline for imposing tariffs and expressed doubts that an agreement could be reached with Japan, although he said he expected a deal with India.
The European Union's trade chief is expected to hold talks this week with peers in Washington DC.
In early trading on Wednesday, the Dow Jones Industrial Average fell 75.68 points, or 0.17 per cent, to 44,419.26, the S&P 500 lost 0.92 points, or 0.01 per cent, to 6,197.09, and the Nasdaq Composite gained 43.60 points, or 0.22 per cent, to 20,246.49.
Meanwhile, the blue-chip Dow was within 1.4 per cent of hitting an all-time high.
US Senate Republicans passed Trump's massive tax-and-spending bill on Tuesday by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending while adding $US3.3 trillion ($A5 trillion) to the country's debt.
The legislation now heads to the House of Representatives for possible final approval, although a handful of Republicans have already opposed some of the Senate provisions.
Seven of the 11 major S&P sectors nursed losses, with healthcare falling about 0.7 per cent, leading declines.
Centene tumbled 33.7 per cent, set for its worst day on record if losses hold, after the health insurer said it had withdrawn its 2025 earnings forecast following data that showed a significant drop in expected revenue from its marketplace health insurance plans.
Shares of peers including Elevance Health dropped 7.0 per cent, Molina Healthcare sank 15 per cent and UnitedHealth lost 2.0 per cent.
Adding to the strain on equities, the US 10-year benchmark yield rose 4 basis points, extending its climb from the previous session.
However, megacaps such as Tesla and Apple helped limit the overall losses and rose more than 2.4 per cent each.
Tesla posted another big drop in quarterly deliveries, putting it on course for its second straight annual sales decline as demand falters due to backlash over CEO Elon Musk's political stance and an aging vehicle line-up.
Verint Systems rose 5.0 per cent after Bloomberg News reported buyout firm Thoma Bravo was in talks to acquire the call-centre software maker.
Declining issues outnumbered advancers by a 1.12-to-1 ratio on the NYSE and by a 1.1-to-1 ratio on the Nasdaq.
The S&P 500 posted 15 new 52-week highs and two new lows while the Nasdaq Composite recorded 20 new highs and 25 new lows.
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The Advertiser
an hour ago
- The Advertiser
Trump's tax-cut bill heads to a final vote in US House
Republicans in the US House of Representatives have advanced President Donald Trump's massive tax-cut and spending bill toward a final yes-or-no vote, appearing to overcome internal party divisions over its cost. During a marathon overnight session, lawmakers cleared a final procedural hurdle needed to begin debate on the bill in a 219-213 vote about 3.30am. It was not clear when they would hold a final vote. As dawn broke in Washington on Thursday, the top House Democrat, Hakeem Jeffries, was well into what was turning into an hours-long speech, calling out Republican lawmakers by name as he blasted the package as a giveaway to the wealthiest Americans. "This one big, ugly bill - this reckless Republican budget - this disgusting abomination is not about improving the quality of life of the American people," he said, a scathing reference to Trump's name for his signature legislation: One Big Beautiful Bill. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans is to provide massive tax breaks for billionaires." Democrats are united in opposition to the bill, but on their own lack the votes to stop the bill in the chamber, which is controlled 220-212 by Trump's Republicans. Republicans can afford no more than three defections to get a final bill passed. The past two weeks have shown deep Republican divides on the bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion in debt and make major cuts to social programs including Medicaid. Republican lawmakers have long railed against the growth of the debt, which has continued during the past two decades regardless of which party was in control in Washington. A handful of Republican holdouts have objected to the bill. One, senator Thom Tillis, opted not to seek re-election after voting against it. Nonetheless, Trump has succeeded in getting the votes to advance the legislation at each step of the way. Votes in the House were held open for hours on Wednesday during the day and overnight as House Speaker Mike Johnson and the White House talked with reluctant members. Johnson expressed optimism on Wednesday night, saying lawmakers had a "long, productive day" discussing the issues. He praised Trump for making phone calls to the holdouts through the early hours of Thursday morning. "There couldn't be a more engaged and involved president," Johnson told reporters. The Senate passed the legislation by the narrowest possible margin on Tuesday after intense debate on the bill's hefty price tag and $US900 million in cuts to the Medicaid healthcare program for low-income Americans. Any changes made by the House would require another Senate vote, which would make it all but impossible to meet Trump's self-imposed deadline of getting the legislation approved by the July 4 holiday. The bill would raise the nation's debt ceiling by $US5 trillion, a necessary step to avoid a devastating default in coming months. The legislation contains most of Trump's top domestic priorities. It would extend Trump's 2017 tax cuts, cut health and food safety net programs, fund Trump's immigration crackdown, and zero out many green-energy incentives. It also includes a $US5 trillion increase in the nation's debt ceiling, which lawmakers must address in the coming months or risk a devastating default. Republicans in the US House of Representatives have advanced President Donald Trump's massive tax-cut and spending bill toward a final yes-or-no vote, appearing to overcome internal party divisions over its cost. During a marathon overnight session, lawmakers cleared a final procedural hurdle needed to begin debate on the bill in a 219-213 vote about 3.30am. It was not clear when they would hold a final vote. As dawn broke in Washington on Thursday, the top House Democrat, Hakeem Jeffries, was well into what was turning into an hours-long speech, calling out Republican lawmakers by name as he blasted the package as a giveaway to the wealthiest Americans. "This one big, ugly bill - this reckless Republican budget - this disgusting abomination is not about improving the quality of life of the American people," he said, a scathing reference to Trump's name for his signature legislation: One Big Beautiful Bill. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans is to provide massive tax breaks for billionaires." Democrats are united in opposition to the bill, but on their own lack the votes to stop the bill in the chamber, which is controlled 220-212 by Trump's Republicans. Republicans can afford no more than three defections to get a final bill passed. The past two weeks have shown deep Republican divides on the bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion in debt and make major cuts to social programs including Medicaid. Republican lawmakers have long railed against the growth of the debt, which has continued during the past two decades regardless of which party was in control in Washington. A handful of Republican holdouts have objected to the bill. One, senator Thom Tillis, opted not to seek re-election after voting against it. Nonetheless, Trump has succeeded in getting the votes to advance the legislation at each step of the way. Votes in the House were held open for hours on Wednesday during the day and overnight as House Speaker Mike Johnson and the White House talked with reluctant members. Johnson expressed optimism on Wednesday night, saying lawmakers had a "long, productive day" discussing the issues. He praised Trump for making phone calls to the holdouts through the early hours of Thursday morning. "There couldn't be a more engaged and involved president," Johnson told reporters. The Senate passed the legislation by the narrowest possible margin on Tuesday after intense debate on the bill's hefty price tag and $US900 million in cuts to the Medicaid healthcare program for low-income Americans. Any changes made by the House would require another Senate vote, which would make it all but impossible to meet Trump's self-imposed deadline of getting the legislation approved by the July 4 holiday. The bill would raise the nation's debt ceiling by $US5 trillion, a necessary step to avoid a devastating default in coming months. The legislation contains most of Trump's top domestic priorities. It would extend Trump's 2017 tax cuts, cut health and food safety net programs, fund Trump's immigration crackdown, and zero out many green-energy incentives. It also includes a $US5 trillion increase in the nation's debt ceiling, which lawmakers must address in the coming months or risk a devastating default. Republicans in the US House of Representatives have advanced President Donald Trump's massive tax-cut and spending bill toward a final yes-or-no vote, appearing to overcome internal party divisions over its cost. During a marathon overnight session, lawmakers cleared a final procedural hurdle needed to begin debate on the bill in a 219-213 vote about 3.30am. It was not clear when they would hold a final vote. As dawn broke in Washington on Thursday, the top House Democrat, Hakeem Jeffries, was well into what was turning into an hours-long speech, calling out Republican lawmakers by name as he blasted the package as a giveaway to the wealthiest Americans. "This one big, ugly bill - this reckless Republican budget - this disgusting abomination is not about improving the quality of life of the American people," he said, a scathing reference to Trump's name for his signature legislation: One Big Beautiful Bill. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans is to provide massive tax breaks for billionaires." Democrats are united in opposition to the bill, but on their own lack the votes to stop the bill in the chamber, which is controlled 220-212 by Trump's Republicans. Republicans can afford no more than three defections to get a final bill passed. The past two weeks have shown deep Republican divides on the bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion in debt and make major cuts to social programs including Medicaid. Republican lawmakers have long railed against the growth of the debt, which has continued during the past two decades regardless of which party was in control in Washington. A handful of Republican holdouts have objected to the bill. One, senator Thom Tillis, opted not to seek re-election after voting against it. Nonetheless, Trump has succeeded in getting the votes to advance the legislation at each step of the way. Votes in the House were held open for hours on Wednesday during the day and overnight as House Speaker Mike Johnson and the White House talked with reluctant members. Johnson expressed optimism on Wednesday night, saying lawmakers had a "long, productive day" discussing the issues. He praised Trump for making phone calls to the holdouts through the early hours of Thursday morning. "There couldn't be a more engaged and involved president," Johnson told reporters. The Senate passed the legislation by the narrowest possible margin on Tuesday after intense debate on the bill's hefty price tag and $US900 million in cuts to the Medicaid healthcare program for low-income Americans. Any changes made by the House would require another Senate vote, which would make it all but impossible to meet Trump's self-imposed deadline of getting the legislation approved by the July 4 holiday. The bill would raise the nation's debt ceiling by $US5 trillion, a necessary step to avoid a devastating default in coming months. The legislation contains most of Trump's top domestic priorities. It would extend Trump's 2017 tax cuts, cut health and food safety net programs, fund Trump's immigration crackdown, and zero out many green-energy incentives. It also includes a $US5 trillion increase in the nation's debt ceiling, which lawmakers must address in the coming months or risk a devastating default. Republicans in the US House of Representatives have advanced President Donald Trump's massive tax-cut and spending bill toward a final yes-or-no vote, appearing to overcome internal party divisions over its cost. During a marathon overnight session, lawmakers cleared a final procedural hurdle needed to begin debate on the bill in a 219-213 vote about 3.30am. It was not clear when they would hold a final vote. As dawn broke in Washington on Thursday, the top House Democrat, Hakeem Jeffries, was well into what was turning into an hours-long speech, calling out Republican lawmakers by name as he blasted the package as a giveaway to the wealthiest Americans. "This one big, ugly bill - this reckless Republican budget - this disgusting abomination is not about improving the quality of life of the American people," he said, a scathing reference to Trump's name for his signature legislation: One Big Beautiful Bill. "The focus of this bill, the justification for all of the cuts that will hurt everyday Americans is to provide massive tax breaks for billionaires." Democrats are united in opposition to the bill, but on their own lack the votes to stop the bill in the chamber, which is controlled 220-212 by Trump's Republicans. Republicans can afford no more than three defections to get a final bill passed. The past two weeks have shown deep Republican divides on the bill, which would add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion in debt and make major cuts to social programs including Medicaid. Republican lawmakers have long railed against the growth of the debt, which has continued during the past two decades regardless of which party was in control in Washington. A handful of Republican holdouts have objected to the bill. One, senator Thom Tillis, opted not to seek re-election after voting against it. Nonetheless, Trump has succeeded in getting the votes to advance the legislation at each step of the way. Votes in the House were held open for hours on Wednesday during the day and overnight as House Speaker Mike Johnson and the White House talked with reluctant members. Johnson expressed optimism on Wednesday night, saying lawmakers had a "long, productive day" discussing the issues. He praised Trump for making phone calls to the holdouts through the early hours of Thursday morning. "There couldn't be a more engaged and involved president," Johnson told reporters. The Senate passed the legislation by the narrowest possible margin on Tuesday after intense debate on the bill's hefty price tag and $US900 million in cuts to the Medicaid healthcare program for low-income Americans. Any changes made by the House would require another Senate vote, which would make it all but impossible to meet Trump's self-imposed deadline of getting the legislation approved by the July 4 holiday. The bill would raise the nation's debt ceiling by $US5 trillion, a necessary step to avoid a devastating default in coming months. The legislation contains most of Trump's top domestic priorities. It would extend Trump's 2017 tax cuts, cut health and food safety net programs, fund Trump's immigration crackdown, and zero out many green-energy incentives. It also includes a $US5 trillion increase in the nation's debt ceiling, which lawmakers must address in the coming months or risk a devastating default.
News.com.au
6 hours ago
- News.com.au
US House sets make-or-break final vote on Trump tax bill
US lawmakers teed up a final vote on Donald Trump's marquee tax and spending bill for early Thursday after a bruising day of Republican infighting that threatened to derail the centerpiece of the president's domestic agenda. Trump is seeking a green light in the House of Representatives for his Senate-passed "One Big Beautiful Bill" -- but faces opposition on all sides of his fractious party over provisions set to balloon the national debt while launching a historic assault on the social safety net. Republican House Speaker Mike Johnson spent much of Wednesday struggling to corral his rank-and-file members as the package scraped through a series of "test" votes that laid bare deep divisions in the party. It was set for a final vote to advance it from Congress to Trump's desk around 8:30 am (1230 GMT) after passing its last procedural hurdle in the early hours. "We feel very good about where we are and we're moving forward," an upbeat Johnson told reporters at the Capitol. "So we're going to deliver the Big, Beautiful Bill -- the president's 'America First' agenda -- and we're going to do right by the American people." Originally approved by the House in May, Trump's sprawling legislation squeezed through the Senate on Tuesday by a solitary vote but had to return to the lower chamber for a rubber stamp of the senators' revisions. The package honors many of Trump's campaign promises, boosting military spending, funding a mass migrant deportation drive and committing $4.5 trillion to extend his first-term tax relief. But it is expected to pile an extra $3.4 trillion over a decade onto the country's fast-growing deficits, while shrinking the federal food stamps program and forcing through the largest cuts to the Medicaid health insurance scheme for low-income Americans since its 1960s launch. While moderates in the House are anxious that the cuts will damage their prospects of reelection, fiscal hawks are chafing over savings that they say fall far short of what was promised. Johnson has to negotiate incredibly tight margins, and can likely only lose three lawmakers in the final vote, among more than two dozen who have declared themselves open to rejecting Trump's bill. - 'Abomination' - Republican leaders had been hoping to spend just a few hours on Wednesday afternoon approving the package, although they had some breathing room ahead of Trump's self-imposed Independence Day deadline on Friday. The 887-page text only passed in the Senate after a flurry of tweaks that pulled the House-passed version further to the right. Republicans lost one conservative who was angry about adding to the country's $37 trillion debt burden and two moderates worried about plans for around $1 trillion in health care cuts. Some estimates put the total number of recipients set to lose their health insurance under the bill at 17 million, while scores of rural hospitals are expected to close. Legislation in the House has to go through multiple preliminary votes before it can come up for final approval, and a majority of lawmakers must wave it through at each of these stages. But there were warning signs early on as the package stumbled at one of its first procedural steps, with a vote that ought to have been straightforward remaining open for seven hours and 31 minutes -- making it the longest in House history. Johnson had been clear that he was banking on Trump leaning on waverers, as the president has in the past to turn around contentious House votes that were headed for failure. The Republican leader has spent weeks hitting the phones and hosting White House meetings to cajole lawmakers torn between angering welfare recipients at home and incurring his wrath. "FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE. RIDICULOUS!!!" Trump thundered in one of multiple posts to his Truth Social platform that sounded increasingly frustrated as Wednesday's marathon voting session spilled into Thursday. The minority House Democrats have signaled that they plan to campaign on the bill to flip the chamber in the 2026 midterm elections, pointing to analyses showing that it represents a historic redistribution of wealth from the poorest Americans to the richest.
Canberra Times
7 hours ago
- Canberra Times
Trump angry as Republicans struggle to pass tax bill
Republicans in the House of Representatives on Wednesday appeared to advance Trump's massive tax-cut and spending bill, but then progress stalled with a handful of holdouts refusing to vote for a bill that non-partisan analysts say will add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion in debt over the next decade.
