Weaker-than-expected private payroll numbers in March stoked concern that the US economy may be slowing down. The data showed that ADP's payroll figures rose by 145,000, missing expectations of 200,000. The weaker numbers were accompanied by lower-than-expected job openings numbers for February and weaker factory orders, causing investors to worry that the Federal Reserve's interest rate increases in the past year could tip the economy into a recession. This has led futures traders to shift their view, with the majority now expecting the Fed to pause its rate hikes at its May meeting, while some still predict a quarter-point rate hike.
The impact of the jobs data on US stocks was mixed, with the Dow Jones Industrial Average rising 114 points or 0.3%, while the S&P 500 fell 0.1%, and the NASDAQ Composite fell 0.6%. The ADP report is just a preview for the closely watched jobs report from the government, which is due on Friday. The broader report is expected to provide the Fed with more information on whether to pause or hike rates in May.
In other news, Johnson & Johnson shares rose 2.9% after the pharmaceutical maker offered an $8.9 billion settlement for talc-related lawsuits. This is an increase from its original proposed $2B offer. FedEx Corporation shares also rose 3.7% after the logistics company said it would consolidate operating divisions to cut costs and boost efficiency. Meanwhile, oil prices weakened, with crude oil WTI futures down 0.1% to $80.64 a barrel, while Brent Oil futures fell 0.1% to $84.88. Gold futures rose 0.1% to $2,039. Overall, investors are cautious, with many watching for the upcoming jobs report and anticipating the Fed's next moves.
