S&P500 and Nasdaq 100: Tech Stocks Rally but ADP Miss Dampens Sentiment

Stocks Inch Higher as Soft Jobs Data Limits Gains

U.S. stocks posted modest gains shortly after the opening on Wednesday, with early enthusiasm tempered by a disappointing labor market report that raised concerns about economic momentum.

At 13:45 GMT, the Dow Jones Industrial Average added 60 points, or 0.17%, while the S&P 500 and Nasdaq Composite rose 0.26% and 0.34% respectively.

Private payrolls data from ADP showed the slowest job growth in over two years, increasing just 37,000 in May—well short of the 110,000 expected.

Could Weak ADP Jobs Data Pressure the Federal Reserve?

The soft labor print increases pressure on the Federal Reserve ahead of Friday’s nonfarm payrolls report, currently projected to show a gain of 125,000. President Donald Trump reignited his public feud with Fed Chair Jerome Powell, posting “Too Late Powell” and urging a rate cut shortly after the ADP data dropped. The market is now pricing in growing expectations for monetary easing if labor market weakness persists.

Tech Stocks Extend Gains as Nvidia Tops Microsoft Again

Technology stocks continued to underpin broader market strength. Nvidia rose nearly 3%, reclaiming its title as the most valuable public company and extending gains on Wednesday alongside Broadcom. The tech-heavy Nasdaq’s rally over recent sessions has reinforced trader confidence, despite ongoing concerns over tariffs and soft economic data.

Tariffs Back in Play After Court Reversal, but Traders Stay Focused on Earnings

Despite temporary reinstatement of tariffs by a federal appeals court, traders appear more focused on corporate earnings. Hewlett Packard Enterprise jumped over 7% after beating estimates and raising guidance, citing minimal tariff impact. Thor Industries surged 12% on strong earnings and full-year guidance reaffirmation. However, CrowdStrike and Asana fell sharply after issuing revenue forecasts that fell short of expectations.

Sector Performance Mixed as Defensive Plays Lag

Sector-wise, Health Care led with a 0.97% gain, followed by Communication Services and Technology. Energy also climbed 0.46%, supported by firm oil prices. Defensive areas like Utilities and Consumer Staples lagged, down 1.04% and 0.44%, respectively, reflecting a shift toward risk-on sentiment.

What’s Next for Traders? All Eyes on Friday’s Jobs Report

The ADP miss has heightened the stakes for Friday’s government payroll data. A second weak print could push the Fed closer to a policy pivot. Traders should also monitor tariff developments and earnings reports, as market sentiment remains highly sensitive to both economic data and trade rhetoric.

More Information in our Economic Calendar.