Taken from CNBC’s Daily Open, our international markets newsletter — Subscribe today
Markets have been rising on hopes that weak jobs data will lead to rate cuts. But they could be staring at an oncoming freight train if the U.S. nonfarm payrolls data due Friday sends recessionary signals.
The ADP private payrolls report on Thursday showed an increase of 54,000 jobs in August, lower than the 75,000 expected by economists polled by Dow Jones. The figure is also less than the revised 106,000 jobs added in July.
Jobless claims for the week ended Aug. 30 also increased to 237,000. That number came in above estimates and marked an 8,000 gain from the prior week, providing more evidence of labor market slowdown.
Currently, the market has shrugged off that data. All three major U.S. indexes ended in positive territory Thursday, with the S&P500 notching a record high.
