U.S. stock indexes have started the day on a positive note as the latest employment data reveals a slower-than-expected growth in job creation for August. This indicates that the previously robust labor market is gradually cooling down due to the impact of higher interest rates.
Building on Three-Day Winning Streak
Wall Street is seeking to continue its three-day winning streak, with the S&P 500 (SPX) experiencing a minor increase of 0.1% at the open. Similarly, the Dow Jones Industrial Average (DJIA) has risen by 65 points or 0.2% to reach 34,908, while the Nasdaq Composite (COMP) has shown a 0.3% advance.
Weaker Private-Sector Job Growth
According to payroll services firm ADP, private-sector jobs experienced a rise of 177,000 in August. This falls short of economists’ expectations of a 200,000 increase and is significantly lower than the revised 371,000 job additions from the prior month.
Slightly Slower Economic Expansion
Revised figures released on Wednesday demonstrate that U.S. economic growth expanded at a slightly slower pace of 2.1% annually in the second quarter. Although this shows a slight downward revision from the initial estimate of 2.4%, the economy still exhibits more underlying strength than anticipated.