Dow Jones, major indices inch higher after weak labor data release

Major U.S. stock indices inched higher on Wednesday, June 4, as weaker-than-expected labor market data gave investors a reality check about the economy’s strength.

The Dow Jones Industrial Average was up 0.05%, the S&P 500 rose 0.13%, and the tech-heavy Nasdaq Composite gained 0.20%—though all three struggled for clear direction amid renewed concerns over employment.

Traders were focused on employment figures, which seemed to have promised some good news earlier this week. On Tuesday, June 3, a survey on job openings showed steady growth, while new positions were in parity with the number of job seekers. However, new data dashed these hopes away.

A survey by the payroll processing firm ADP showed an increase of just private-sector payrolls of just 37,000 in May. This is a steep decline from a 60,000 increase in April, missing the expected figure of 110,000 by a significant margin. The big miss now changes the outlook on Friday’s crucial nonfarm payrolls report.

Weak jobs data adds to economic uncertainty

A weak reading on the Friday job market data will add to the growing uncertainty. This is especially significant as the Federal Reserve, a key influence on the market, grapples with pressures from every direction. For one, Donald Trump’s budget will reportedly lead to a $2.4 trillion deficit.

While the figure is less than previously estimated, it is already causing a stir among Treasury holders. This is especially true after Moody’s downgrade of the U.S. debt. Still, yields on major Treasuries were down on Wednesday, with ten-year Treasury yields at 4.353%, falling 0.107% the same day.

At the same time, Bitcoin (BTC) also felt the effects of economic uncertainty. The “digital gold was trading at $104,996, down 0.99% in 24 hours. However, investors flocked to physical gold, which was up at $3,374 per ounce, gaining 0.66%.