On Thursday, the stock market closed with a loss, although it rebounded from session lows. This decline was prompted by a significant increase in the estimate of private-sector jobs growth. The surge in Treasury yields that followed raised concerns about the Federal Reserve’s potential interest rate hikes.
Stock Market Performance
According to preliminary data, the Dow Jones Industrial Average (DJIA) fell around 366 points or 1.1%, closing near 33,922. Similarly, the S&P 500 (SPX) and Nasdaq Composite (COMP) both dropped 0.8% during the session.
Private-Sector Jobs Growth Exceeds Expectations
The ADP’s report on Thursday morning revealed that the private sector added 497,000 jobs in June. This figure surpassed economists’ predictions of a gain of 220,000 private-sector jobs, as indicated in a Wall Street Journal poll. Although the ADP data is not consistently reliable for projecting official jobs figures, traders found the significant increase too significant to disregard.
Upcoming Release of June Jobs Report
The Labor Department is expected to release its highly anticipated June jobs report on Friday. This report is closely monitored by investors and analysts alike.