S&P 500 ticks higher as traders brace for Friday’s jobs report after weak ADP hiring data: Live updates

The S&P 500 rose on Thursday as weak private payrolls data raised the stakes for Friday’s official jobs report. A big drop Salesforce weighed on the Dow.

The broad market index climbed 0.3%, as did the Nasdaq Composite. The Dow Jones Industrial Average also gained 74 points, or about 0.2%, but gains were kept in check by a 6% fall in Salesforce shares on the heels of the software company posting a disappointing revenue outlook.

The ADP private payrolls report showed an increase of 54,000 in August. Economists polled by Dow Jones had expected private employers to add 75,000 jobs. The figure is also less than the revised 106,000 in July.

The reaction was limited as investors reasoned that the recent ADP data was weak enough for the Federal Reserve to justify a September rate cut, but not soft enough to herald a recession. Traders increased their bets that the central bank would cut on Sept. 17, with fed funds futures trading showing an uptick initially following ADP’s report, per CME Group’s FedWatch tool.

“The Federal Reserve’s free pass on the labor market has ended,” said Jamie Cox, managing partner at Harris Financial Group. “ADP data continue to reinforce the narrative that the rate of positive change in the labor market has slowed significantly, so you can expect the Fed to tilt it’s balance of risks to cut rates in September.”

Jobless claims for the week ended Aug. 30 also increased to 237,000. That number came in above estimates and marked an 8,000 gain from the prior week, providing more evidence of slowing in the labor market. Meanwhile, August’s ISM non-manufacturing PMI reading came in at 52.0, slightly better than the Dow Jones forecast for 50.8.

Those reports come ahead of Friday’s big jobs report, which is expected to post a 75,000 nonfarm payrolls gain for last month, according to economists polled by Dow Jones.

Wall Street is coming off a mixed session. The S&P 500 and the Nasdaq Composite posted solid gains thanks to tech. On the other hand, the blue-chip Dow, known for its greater exposure to the real economy, dipped 0.05%.

Traders are also turning their eyes to Washington for the latest on trade, after President Donald Trump asked the Supreme Court to quickly rule on an appeal that would overturn lower court decisions that deemed most tariffs illegal.