The latest ADP National Employment Report for August has unveiled a softer labor market than anticipated, with private payrolls registering an increase of 177,000 jobs.
This figure fell short of market estimates, which had projected a gain of 195,000 jobs. The report serves as an important barometer for understanding the state of the US job market.
US stocks rose in late morning trading on Wednesday following several updates showing that the job market continued cooling, but economic growth remained resilient.
The S&P 500 rose 0.3 percent and continued to chip away at the market's losses in August. The benchmark index is coming off of three straight gains. The Dow Jones Industrial Average rose 20 points, or 0.1 percent, to 34,872 as of 11:24 a.m. and the Nasdaq composite rose 0.4 percent.
Technology stocks led the market's gains. Apple jumped 1.4 percent and Palo Alto Networks rose 1.3%. HP was on the losing end with a 8.2 percent slump after cutting its profit forecast for the year.
Wall Street's focus this week remains a broad mix of economic updates that investors hope will paint a clearer picture of where the economy is headed and whether the Federal Reserve has enough reason to hold off on any additional interest rate hikes.
The US downgraded its economic growth estimate for the second quarter to an annual rate of 2.1 percent from 2.4 percent. Economists had forecast that the gross domestic product, or GDP, assessment would remain unchanged though it still marks a slight increase from growth of 2% during the first quarter.
Treasury yields fell following the latest economic reports. The yield on the 10-year Treasury slipped to 4.10% from about 4.15% just before the latest GDP report. It stood at 4.12% late Tuesday.
The yield on the 2-year Treasury, which tracks expectations for the Fed, fell to 4.83% from a level of 4.90% prior to the latest GDP release. It stood at 4.89% late Tuesday.
The latest round of economic updates are signaling that the Fed may be able to pause hiking its main interest rate, which it has pushed to its highest level since 2001 in an effort to tame inflation. The central bank held rates steady at its last meeting and investors expect the same at its upcoming meeting in September.
(With inputs from AP)
