Stock index futures were pointing to a slightly weaker start on Wall Street Wednesday, as markets digested an unexpected decline in U.S. private sector employment and weighed recent gains.
Futures for the Dow, S&P 500, and Nasdaq all edged lower in early premarket trade after a report from ADP revealed the U.S. private sector shed 33,000 jobs in June. This figure defied economists’ expectations for an increase of 95,000 and followed a downward revision to May’s data, which now shows a gain of just 29,000 jobs.
ADP’s Chief Economist, Dr. Nela Richardson, explained that while layoffs remain rare, many firms are hesitating to hire or replace workers, leading to last month’s net job losses.
The cautious sentiment comes after a mixed session on Tuesday. The Dow Jones Industrial Average rallied 400 points, closing at its highest level in more than four months, while both the Nasdaq and S&P 500 lost ground after hitting fresh records earlier in the week. The Dow closed at 44,494.94 (+0.9%), while the S&P 500 slipped 0.1% to 6,198.01 and the Nasdaq declined 0.8% to 20,202.89.
Meanwhile, political developments in Washington remained in focus. The Senate passed President Donald Trump’s sweeping tax and spending package in a dramatic 50-50 vote, with Vice President J.D. Vance casting the tie-breaking vote. The bill now returns to the House for final approval.
On the economic front, fresh data from the Institute for Supply Management (ISM) showed a modest uptick in manufacturing activity. The June PMI rose slightly to 49.0 from 48.5 in May, but remained below the 50 threshold, signaling continued contraction in the sector.
Separately, the Labor Department reported a surprising jump in job openings. Openings climbed to 7.77 million in May, up from 7.40 million in April, defying forecasts for a decline.
Sector-wise, housing stocks stood out as top performers, with the Philadelphia Housing Sector Index surging 3.3%. Oil services also saw gains, rising 2.9%, while transportation, banking, and pharmaceuticals showed strength. In contrast, software and natural gas names pulled back.