Dow, S&P 500, Nasdaq inch higher despite ADP jobs report

U.S. stocks were slightly up in early trading on Wednesday, June 4, as investor sentiment continued to waver. A fresh catalyst weighing on the markets was the latest report showing weak private-sector hiring growth, adding downside pressure to the broader economic outlook.

The Dow Jones Industrial Average opened 95 points higher, as the blue-chip index looked to extend its four-day winning streak. The S&P 500 and Nasdaq Composite also edged into positive territory, gaining 0.2% and 0.3%, respectively.

While stocks could still notch a fifth straight day of gains, sentiment remains fragile. Weaker jobs data, ongoing tariff disputes, and policy uncertainty continue to rattle investor confidence. Markets have flipped between optimism and caution for months in reaction to fluctuating trade talks and economic signals.

ADP jobs data disappoints

The latest labor market signal came from ADP, the payrolls processing firm. Its report showed private-sector payrolls increased by just 37,000 in May, down from 60,000 in April and well below the forecast of 110,000. The figure marks the slowest monthly job growth since March 2023.

The ADP miss shifts focus to Friday’s nonfarm payrolls report, which is expected to show an increase of 125,000 jobs in May. Investors will likely weigh all recent economic data closely as they recalibrate both short- and long-term outlooks.

As stocks opened higher, Bitcoin (BTC) also looked to hold above $105k. Meanwhile, gold hovered around $3,382.

Tariffs and interest rates remain a key focus for investors, with the U.S.-China trade talks are one to watch. On the Federal Reserve’s interest rates policy, President Donald Trump is once again showing his disappointment in Fed Chair Jerome Powell.

In comments after the ADP data, Trump posted on Truth Social:

“ADP NUMBER OUT. ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”