The market eagerly awaits the official US jobs report scheduled for release on Friday, hoping it will show data supporting interest rate cuts without raising recession fears. Economists surveyed by Dow Jones expect nonfarm payrolls to have increased by about 75,000 jobs last month.

The S&P 500 index rose to a new record on Thursday after an afternoon buying spree boosted stock performance, as traders ignored weak private sector jobs data released earlier in the day. The market is eagerly awaiting Friday’s official jobs report, hoping it will support interest rate cuts without sparking recession concerns.

The S&P 500 closed up 0.83% at 6502.08 points, while the Nasdaq Composite rose 0.98% to 21707.69 points. The Dow Jones Industrial Average gained 350.06 points, or 0.77%, closing at 45621.29 points. This marked the 21st record high for the S&P 500 this year.

The ADP private sector jobs report showed an increase of 54,000 jobs in August. Economists surveyed by Dow Jones had expected an addition of 75,000 private sector jobs. This figure is lower than the revised 106,000 jobs added in July.

Weak Data

Nevertheless, stocks continued to rise as investors viewed the recent ADP data as weak enough to justify a Federal Reserve rate cut in September but not so weak as to indicate an imminent recession. Traders increased their expectations for a rate cut by the central bank on September 17, as federal funds futures rose after the ADP report, according to CME Group’s FedWatch tool. They indicated a 97% chance of a rate cut.

Jamie Cox, co-founder of Harris Financial Group, said, “The Fed’s tolerance period regarding the labor market has ended.” He added, “ADP data continues to confirm that the positive growth rate in the labor market has slowed significantly, so the Fed is likely to tilt the risk balance toward cutting rates in September.”

Treasury Yields

US Treasury yields fell after the ADP data release, easing pressure on the market. The rise in bond yields earlier in the week had limited price gains, with 30-year bond yields temporarily surpassing 5% on Wednesday amid uncertainty over President Donald Trump’s tariff policies and threats to the Federal Reserve’s independence.

On Thursday, initial jobless claims for the week ending August 30 rose to 237,000, higher than expected and up 8,000 from the previous week, indicating a slowdown in the labor market. However, the ISM Services PMI showed better-than-expected growth for August, indicating continued expansion in the sector.

These reports come ahead of Friday’s main jobs report, with economists surveyed by Dow Jones expecting nonfarm payrolls to increase by about 75,000 jobs last month.

Amazon shares also helped push the market higher, closing the session up more than 4%, boosted by strong demand for its stock due to its relationship with the company Anthropique.