The May private payrolls report was the latest data to suggest an easing in the labour market and comes after a report on Tuesday showed job openings fell in April to the fewest in more than three years. Investor focus is now on the nonfarm payroll report for May due on Friday
At closing bell, the Dow Jones Industrial Average index advanced 96.04 points, or 0.25%, to 38,807.33. The S&P500 index added 62.69 points, or 1.18%, to 5,354.03. The tech-heavy Nasdaq Composite index increased by 330.86 points, or 1.96%, to 17,187.90.
Total 7 of 11 S&P500 sectors ended higher along with gain in the S&P500 Index. Information technology sector was top performers, rising 2.68%. utilities sector was bottom performer, falling 0.58%.
Shares of Nvidia climbed more 5% to a record high of $1,224.40, becoming the world's second-most valuable company after breaching market valuation of $3 trillion and overtaking Apple.
ECONOMIC NEWS: US Private Sector Job Growth Slows In May, Says ADP- A report released by payroll processor ADP on Wednesday showed private sector job growth in the U.S. slowed by more than expected in the month of May. ADP said private sector employment climbed by 152,000 jobs in May after jumping by a downwardly revised 188,000 jobs in April. The report said employment in the service-providing sector rose by 149,000 jobs, reflecting notable increases in employment in the trade/transportation/utilities and education/health services industries. Meanwhile, employment in the goods-producing sector crept up by 3,000 jobs, as an uptick in employment in the construction industry was largely offset by decreases in employment in the construction and natural resources/mining industries. ADP also said employment at large and medium establishments climbed by 98,000 jobs and 79,000 jobs, respectively, while employment at small establishments edged down by 10,000 jobs. The report also said year-over-year pay growth for job-changers fell for the second month, slowing to 7.8%. Pay growth for job-stayers held steady for the third month at 5%.
US ISM Services Index Jumps To Nine-Month High In May- Service sector activity in the U.S. returned to growth in the month of May after contracting in April for the first time since December 2022, according to a report released by the Institute for Supply Management on Wednesday. The ISM said its services PMI jumped to 53.8 in May from 49.4 in April, with a reading above 50 indicating growth in the sector. With the much bigger than expected increase, the services PMI reached its highest level since hitting 54.1 in August 2023. The surge by the headline index partly reflected a significant acceleration in the pace of growth in business activity, as the business activity index spiked to 61.2 in May from 50.9 in April. The new orders index also climbed to 54.1 in May from 52.2 in April, while the employment index rose to 47.1 in May from 45.9 in April but continued to indicate a contraction. The report also said the prices index slipped to 58.1 in May from 59.2 in April, suggesting a modest slowdown in the pace of price growth.
US Private Sector Growth Fastest In Over 2 Years As Demand Rebounds- U.S. private sector activity rose at the fastest pace in over two years in May led by strong gains in output and new orders across both the manufacturing and services sectors, the purchasing managers' survey findings from S&P Global showed Wednesday. The S&P Global final US Composite PMI, which combines manufacturing and services, rose to 54.5 from 51.3 in April. A reading above 50 suggest growth in the private sector. The final reading was the strongest since April 2022 and also a tad higher than the flash score of 54.4. A renewed increase in new orders led the S&P Global final US Services PMI to a one-year high of 54.8 in May from 51.3 in April. The reading was unchanged from its flash score and the sector has now expanded in each of the past 16 months. New orders in the services sector grew in May after the first fall in six months in April, thanks to marketing efforts that secured new business and improvements in economic conditions. However, new export orders shrunk for the fourth month in a row and at the fastest pace since January last year, as price hikes hurt external demand. Business confidence strengthened modestly amid signs of improvement in demand.
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