Last Updated: 4:05 PM EST
Stock indices finished today’s trading session in the green as investors hoped that a tariff exemption for automakers would lead to more concessions in other areas of the economy. As a result, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.36%, 1.11%, and 1.14%, respectively.
However, earlier today, new data from ADP revealed that there was a significant slowdown in private-sector hiring in February, which led to concerns about the health of the U.S. economy. The report shows that only 77,000 jobs were added in February – far short of economists’ expectations of 140,000. This marks a substantial decline from the 186,000 jobs added in January.
According to ADP chief economist Nela Richardson, the slowdown in hiring may be due to policy uncertainty and a decline in consumer spending. Richardson also noted that employers may be hesitant to hire due to the uncertain economic climate. Interestingly, this slowdown is being reflected in other economic data points, such as declines in consumer spending, retail sales, and manufacturing activity.
Nevertheless, Richardson and other economists, such as former Council of Economic Advisors chairman Jason Furman, believe that the labor market remains relatively healthy. While some sectors may be flashing warning signs, the overall trend does not indicate a sharp downturn. In addition, the Bureau of Labor Statistics is set to release its February jobs report on Friday, which will provide further insight into the labor market. Economists expect the report to show 160,000 jobs added in February, with the unemployment rate holding steady at 4%.
First Published: 3:50 AM EST
U.S. stock futures traded higher on Wednesday morning, after comments from Commerce Secretary Howard Lutnick suggested potential negotiations with Canada and Mexico. This news likely boosted investor optimism about easing trade tensions. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.92%, 0.66%, and 0.8%, respectively, at 4:33 a.m. EST, March 5.
Tuesday’s trading session saw significant market declines, with the Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) closing lower by 1.55%, 1.22%, and 0.35%, respectively.
The market downturn was primarily due to the implementation of President Trump’s 25% tariffs on goods from Canada and Mexico, and additional 10% tariffs on China. These actions triggered retaliatory measures from the affected countries, escalating fears of a global trade war.
Tariff news impacted U.S. stocks across sectors. Stocks of automakers like General Motors (GM) and Ford (F) declined 4.6% and 2.9%, respectively, on higher costs and supply chain risks. Also, agriculture companies, such as Archer Daniels Midland (ADM) and Deere (DE) were both down 1.6%, due to concerns over reduced demand.
Moreover, retailers like Walmart (WMT) and Target (TGT) grappled with potential cost increases, pressuring profit margins. WMT and TGT stocks closed lower by 2.7% and 3%, respectively.
In the after-market action, CrowdStrike (CRWD) stock declined 9.3% on providing a weak earnings outlook. Also, AeroVironment (AVAV) fell 16% after it released lower-than-expected results and lowered guidance.
In key economic data due today, investors are looking forward to the Private Payrolls report for February provided by Automatic Data Processing (ADP). Also, the Services Purchasing Managers’ Index (PMI) for the last month is scheduled for release today. These reports will offer insights into the current state of the U.S. economy.
On the earnings front, several companies, including JD.com (JD), Marvell (MRVL), Rigetti Computing (RGTI), MongoDB (MDB), Zscaler (ZS), and Abercrombie & Fitch (ANF), are scheduled to report quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.236%. Simultaneously, WTI crude oil futures are trending lower, hovering near $67.81 per barrel as of the last check.
Elsewhere, European indices opened higher on hopes that Trump’s 25% tariffs on Canada and Mexico might ease, investors watched for changes to Germany’s debt brake system.
Asia-Pacific Markets Ended Higher on Wednesday
Asia-Pacific indices were in the green today after China set a 5% GDP growth target for 2025, matching 2024, despite U.S. trade tensions. Further, Beijing promised support for domestic spending and technology while cutting its inflation target to 2% from the long-standing 3%.
Notably, Hong Kong’s Hang Seng Index was up 2.84%. Further, Japan’s Nikkei and Topix indices closed higher by 0.23% and 0.3%, respectively. Also, China’s Shenzhen Component and Shanghai Composite indices were up 0.28% and 0.53%, respectively.
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