S&P, Nasdaq Rise On Soft Labor Report: Wall Street Doubles Down On September Fed Cut

Sep 4 - U.S. stocks moved higher on Thursday as Wall Street weighed softer jobs data against rising expectations for Federal Reserve rate cuts. The S&P 500 climbed 0.4%, the Nasdaq Composite added 0.3%, and the Dow Jones Industrial Average gained 0.4%.

ADP data showed private-sector job growth slowed in August, with just 54,000 payrolls added versus expectations of 65,000. Weekly jobless claims also rose to their highest level since June, underscoring a weaker labor market. However, the Institute for Supply Management reported that services activity expanded more than forecast, even as hiring contracted for the third straight month.

The combination of slowing jobs growth and ongoing service-sector resilience reinforced investor confidence that the Fed will move forward with a rate cut in September. Traders now price in a 97% probability of a cut, up from 91.7% before the latest labor reports.