US stocks shrug off gloomy private hiring data
WASHINGTON: Wall Street stocks logged modest gains in early trading Wednesday, as investors remained cautious of overreacting to data that showed private sector hiring hit its lowest level in more than two years.
The Dow Jones Industrial Average rose 0.2 percent to 42,615.34, while the broad-based S&P 500 index advanced 0.3 percent to 5,989.01.
The tech-focused Nasdaq Composite climbed 0.4 percent to 19,479.38.
Data released by payroll firm ADP before markets opened showed that private sector employment rose by 37,000 jobs in May, a slowdown from 60,000 in April.
This was the slowest pace since March 2023, the report said, and significantly below expectations of 115,000 according to a Briefing.com consensus forecast.
The data prompted US President Donald Trump to lash out at Federal Reserve chief Jerome Powell on social media, urging him again to lower interest rates.
Chip stocks lift Wall Street as investors await trade negotiations
But markets were sanguine as investors await official payroll data due Friday.
ADP's hiring figures are 'very much an imperfect predictor of the monthly (employment) numbers that come out two days later,' said Steve Sosnick of Interactive Brokers.
'As a result, whenever the market does react to those numbers, it tends to not do so too dramatically,' he added. 'Traders don't want to overreact.'
Traders are also monitoring trade tensions between the United States and China.
Stock markets have fluctuated as Trump accused Beijing of violating a pact to de-escalate tariffs, a claim that China has rejected.
On Wednesday, Trump said it was 'extremely hard' to reach a deal with Chinese President Xi Jinping, with Beijing hitting back by saying its stance in trade negotiations had been 'consistent.'
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