Wall Street Pauses Ahead of Key US Jobs Report
Wall Street traded cautiously this afternoon as investors await tomorrow’s closely watched update on the US job market — a release that could set the stage for the Federal Reserve’s next move on interest rates.
The S&P 500 edged up by less than 0.1%, while the Dow Jones Industrial Average hovered flat. In the bond market, US Treasury yields slipped following mixed signals on employment trends.
Recent data has painted a picture of a cooling labour market. One report indicated that private-sector employers nearly halved their hiring in the past month, while another showed an uptick in jobless claims as more Americans filed for unemployment benefits.
The spotlight now turns to Friday’s comprehensive employment report from the US Labour Department. The findings will carry significant weight with the Federal Reserve, which has so far resisted cutting rates this year.
A clear slowdown in hiring could open the door for the Fed to reduce its benchmark interest rate at its upcoming meeting in a couple of weeks. Lower rates typically provide a boost to the economy and job creation, though they also risk fuelling inflation.
For most of 2025, the Fed has prioritised keeping inflation in check, holding rates steady despite signs of strain in the job market. Tomorrow’s data could prove decisive in shifting that balance.
