Wall Street posts modest gains as shutdown begins and jobs data disappoints, but optimism around earnings and rate cuts keeps markets afloat.
Major indexes inched higher Wednesday despite a shaky macro backdrop, with the S&P 500, Nasdaq 100 and Dow Jones each adding just a few tenths of a percent by midday in New York.
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The resilience came on the heels of two major economic headwinds: the start of a federal government shutdown and the weakest private payrolls report in more than two years.
The ADP Employment Report for September showed a drop of 32,000 private-sector jobs — the steepest monthly decline since March 2023. That figure badly missed Wall Street’s forecast, adding fuel to expectations that the Federal Reserve may continue cutting interest rates later this month.
With the government shutdown delaying several official economic releases, the ADP data took on added weight for traders seeking clarity on the labor market’s health.
The health care sector led the rally on Wednesday, as the Trump administration moved forward with its “Most Favored Nation” proposal — a plan …