US stocks traded higher during Thursday's midday session. ADP data revealed a sharp slowdown in US labor market growth, while last week's initial jobless claims further indicated deteriorating momentum in the American employment market. Markets are focused on Friday's August non-farm payroll report.

The Dow Jones gained 209.09 points, or 0.46%, to 45,480.32; the Nasdaq rose 81.95 points, or 0.38%, to 21,579.68; and the S&P 500 increased 27.17 points, or 0.42%, to 6,475.43.

Thursday morning saw chip manufacturer Broadcom's stock price rise, with the company scheduled to report earnings after market close.

Data released Thursday showed US private sector job additions in August fell short of expectations, providing fresh evidence of labor market challenges. Private sector employment increased by only 54,000 jobs in August, below the 75,000 expected by economists surveyed by Dow Jones and significantly slower than the previous month's 104,000 gain.

Following these reports, Friday's major employment report will be crucial in determining the outlook for the recently volatile US stock market.

The previous trading session saw mixed results for US stocks. The S&P 500 and Nasdaq Composite recorded solid gains driven by technology stocks, while the blue-chip Dow, with greater exposure to real economy risks, declined 0.05%.

Wednesday's major indexes showed divergent trends, with strong gains in Google parent Alphabet and Apple boosting the technology sector. However, new signs of labor market weakness caused the Dow to close slightly lower. Wednesday's official Job Openings and Labor Turnover Survey data showed corporate hiring activity fell to rare levels not seen since the pandemic peak.

"I do expect these pressures to accelerate before year-end, but I don't think they'll significantly impact the market rally before the Christmas holidays," said Lauren Goodwin, Chief Market Strategist at New York Life Investment Management.

Goodwin added: "The reason is that I believe pricing pressures—such as the 'no hiring, no firing' economic conditions—still have time to create real pressure on what has been a fairly optimistic situation."

Traders are also monitoring developments in Washington regarding trade, after former President Trump requested the Supreme Court to expedite an appeal to overturn lower court rulings that declared most of his implemented tariffs illegal.

**ADP Data Shows Sharp Labor Market Growth Slowdown in August**

Thursday's data showed US private sector job additions in August fell below expectations, providing additional evidence of labor market difficulties.

According to data released Thursday morning by payroll processing company ADP, private sector employment increased by only 54,000 jobs in August. This was below the 75,000 expected by economists surveyed by Dow Jones and significantly slower than the previous month's 104,000 increase.

"Job growth started the year strong but has been disrupted by uncertainty," said ADP Chief Economist Nela Richardson in a press release.

Richardson noted that rising consumer concerns, labor shortages, and AI-related industry disruptions may be driving factors behind the growth slowdown.

ADP data showed particularly weak performance in trade, transportation, and utilities-related jobs in August, with the sector losing 17,000 net positions. Education and health services followed, shedding 12,000 jobs.

However, these losses were partially offset by strength in leisure and hospitality, which added 50,000 jobs during the month.

Wage growth maintained consistent pace in August. Workers who stayed in their positions saw 4.4% year-over-year salary increases, while job switchers experienced 7.1% wage growth over the same period.

Thursday's ADP report intensified already concerning labor market conditions. According to government data released Wednesday, the Job Openings and Labor Turnover Survey showed July job openings reached their worst levels since 2020.

Another report showed US initial jobless claims rose more than expected last week, again indicating deteriorating momentum in the American job market.

For the week ending August 30, initial jobless claims reached 237,000. Economists surveyed by Dow Jones had previously expected an increase from the prior week's 229,000 to 230,000.

The US trade deficit widened to a four-month high in July as businesses rushed to import goods and raw materials ahead of new tariffs on global trading partners.

Data released Thursday by the Commerce Department showed the US trade deficit in goods and services expanded nearly 33% from the previous month to $78.3 billion in July. Economists surveyed had predicted a deficit of approximately $78 billion.

Imports increased 5.9% in July after three consecutive months of decline, while exports rose modestly. The data is not adjusted for inflation.

Attention now turns to the major employment report scheduled for release Friday morning. According to estimates compiled by Dow Jones, economists expect the official government report to show non-farm payroll employment increased by 75,000 in August, roughly flat from the previous month. Economists predict the unemployment rate will rise slightly from 4.2% to 4.3%.

**Market Views Fed Rate Cut as Certainty for September**

In recent days, multiple Fed officials have strengthened market expectations for imminent rate cuts. Meanwhile, data continues to highlight labor market softening, with swap contracts showing traders have almost fully bet on a 25 basis point cut this month, with significant disagreement on whether to cut again in October. Before Wednesday, most traders only expected the Fed to cut rates once more in December.

"The market is more confident about Fed rate cuts this month, which is putting some downward pressure on bond yields," said Derek Halpenny, Global Head of Market Research at MUFG.

He added that overall, the market remains in a "consolidation and wait-and-see" mode, awaiting Friday's non-farm payroll data.

"A September rate cut is a done deal, but we don't have particularly strong confidence after that. Regarding US stocks, we're looking for opportunities and would choose to add positions if there's temporary weakness," said Fabien Benchetrit, Head of French and Southern European Allocation at BNP Paribas Asset Management.

**Individual Stock Focus**

Meta Platforms is reportedly updating its performance guidance.

Goldman Sachs will purchase $1 billion in T. Rowe Price Associates stock in a private transaction.

Sanofi's OX40L monoclonal antibody trial data fell short of expectations.

C3.ai's first quarter results missed expectations.

Salesforce reported second quarter revenue of $10.24 billion, up 9.8% year-over-year.

Toyota plans to expand its Czech factory and will produce pure electric vehicles in Europe for the first time.