US stocks finished mixed on Wednesday, with the Dow Jones Industrial Average snapping a four-day winning streak. The blue-chip index fell 91 points to close at 42,427.74, down 0.22% on the day. Meanwhile, the S&P 500 held steady, inching up just 0.01% to 5,970.81, and the tech-heavy Nasdaq gained 0.32%, ending at 19,460.49.
Investors took a cautious tone following a surprisingly soft private payrolls report from ADP, which showed only 37,000 jobs were added in May—well below economists’ forecast of 110,000. It was the lowest monthly job creation figure from ADP in more than two years.
Labour market jitters
The ADP report heightened investor nervousness ahead of Friday’s official government jobs data from the Bureau of Labor Statistics, expected to show 125,000 jobs added in May. Nela Richardson, ADP’s chief economist, said hiring momentum is slowing, though wage growth remains solid at 4.5% for job-stayers and 7% for job-changers.
Markets are now recalibrating expectations for Federal Reserve policy, with President Donald Trump quickly seizing on the data to demand interest rate cuts. In a post on Truth Social, he again criticised Fed Chair Jerome Powell, writing “Too Late Powell must now LOWER THE RATE.”
Despite the political pressure, Fed officials have signalled they are likely to keep rates steady at their next meeting in two weeks. Governor Lisa Cook warned this week that uncertainty—driven by tariffs, inflation, and global risks—poses challenges to both price stability and employment.
CBO
Adding to the day’s uncertainty, the Congressional Budget Office released its analysis of Trump’s signature economic bill, projecting a US$2.4 trillion increase in the federal deficit over the next decade and nearly 11 million more uninsured Americans. The news rattled some investors, particularly as internal GOP divisions threaten to derail the legislation’s path through the Senate.
Commodities and the dollar
Brent crude is trading 1.16% lower at US$64.87 a barrel.
WTI crude is trading 0.99% lower at US$62.78 a barrel.
Spot gold is trading flat at US$3,372.62 an ounce.
Gold futures (COMEX) are trading 0.58% higher at US$3,396.60 an ounce.
One Australian dollar is buying 64.95 US cents.
Futures
The SPI future are pointing to a 2 point fall.
