U.S. Stocks May Lack Direction As Jobs Repot Looms

(RTTNews) - The major U.S. index futures are currently pointing to a roughly flat open for the markets on Thursday, with stocks likely to show a lack of direction following the rebound seen in the previous session.

Traders may be reluctant to make significant moves ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.

The report, which is expected to show employment increased by 75,000 jobs in August after rising by 73,000 jobs in July, could impact the outlook for interest rates.

Currently, the Federal Reserve is widely expected to lower interest rates later this month, with CME Group's FedWatch Tool indicating a 97.6 percent chance of a quarter point rate cut.

Payroll processor ADP released a report this morning showing private sector employment in the U.S. increased by less than expected in the month of August.

ADP said private sector employment rose by 54,000 jobs in August after jumping by an upwardly revised 106,000 jobs in July.

Economists had expected private sector employment to rise by 65,000 jobs compared to the addition of 104,000 jobs originally reported for the previous month.

The Labor Department also released a report showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 30th.

Stocks gave back ground after an early advance on Wednesday but moved back to the upside late in the session to end the day mostly higher. The Nasdaq and the S&P 500 regained ground following the pullback seen over the two previous sessions, although the narrower Dow saw further downside.

The tech-heavy Nasdaq jumped 218.10 points or 1.0 percent to 21,497.73 and the S&P 500 climbed 32.72 points or 0.5 percent to 6,448.26. The Dow, on the other hand, posted a modest loss, edging down 24.58 points or 0.1 percent to 45,271.23.

The notable rebound by the Nasdaq came amid a surge by shares of Alphabet (GOOGL), with the Google parent spiking by 9.1 percent.

Alphabet rallied after a federal judge ruled the company will avoid the most severe consequences in a landmark antitrust case.

U.S. District Judge Amit Mehta ruled Google will not be required to divest its Chrome browser nor a contingent divestiture of the Android operating system.

"Plaintiffs overreached in seeking forced divestiture of these key assets, which Google did not use to effect any illegal restraints," Mehta said.

Shares of Apple (AAPL) also jumped by 3.8 percent, as the decision allows the tech giant to continue to preload Google Search onto its iPhones.

The strength on Wall Street also came after the Labor Department released a report showing job openings in the U.S. fell to their lowest level in ten months in July.

While the data provides further signs of softening labor market conditions, the report has also increased confidence the Federal Reserve will lower interest rates later this month.

Despite the strength seen in the broader markets, most of the major sectors ended the day showing only modest moves.

Gold stocks moved notably higher, however, with the NYSE Arca Gold Bugs Index climbing by 1.8 percent as the price of the precious metal reached another new record high.

On the other hand, a sharp pullback by the price of crude oil weighed on energy stocks, dragging the Philadelphia Oil Service Index and the NYSE Arca Oil Index down by 2.7 percent and 2.6 percent, respectively.

Commodity, Currency Markets

Crude oil futures are sliding $0.74 to $63.23 a barrel after tumbling $1.62 to $63.97 a barrel on Wednesday. Meanwhile, after surging $43.30 to $3,635.50 an ounce in the previous session, gold futures are slumping $31.60 to $3,603.90 an ounce.

On the currency front, the U.S. dollar is trading at 148.49 yen versus the 148.10 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1632 compared to yesterday's $1.1662.

Asia

Asian stocks rose broadly on Thursday, even as Chinese and Hong Kong markets ended sharply lower following reports that China's financial regulators are considering a number of cooling measures for the stock market, including lifting certain short selling restrictions, increasing checks on speculative trades, and discouraging heavy retail participation.

Underlying sentiment remained supported somewhat as bond market jitters eased and weak U.S. labor market data fueled rate-cut bets.

A day before a pivotal U.S. payrolls report, markets are pricing in a September cut and anticipating at least two reductions this year.

China's Shanghai Composite Index tumbled 1.3 percent to 3,765.88, extending losses for a third straight session after reports emerged that regulators are considering new steps to cool the stock market.

Hong Kong's Hang Seng Index slumped 1.1 percent to 25,058.51 as investors booked profits on concerns that recent gains were too fast.

Japanese markets rallied as the country's top trade negotiator Ryosei Akazawa left for the U.S. for ministerial talks, helping lift shares of exporters tied to U.S. demand.

Additionally, a closely watched auction of 30-year Japanese government bonds passed smoothly, helping soothe investor nerves after global debt market turmoil.

The Nikkei 225 Index jumped 1.5 percent to 42,580.27, while the broader Topix Index settled 1.0 percent higher at 3,080.17. Tech shares followed their U.S. peers higher, with Advantest surging 4.7 percent and SoftBank climbing 6.5 percent.

Seoul stocks ended higher for a third day running, with the Kospi rising 0.5 percent to 3,200.83, led by semiconductor, IT and chemical stocks. LG Chem and Naver both shot up about 3 percent, while SK Innovation surged 4.9 percent.

Australian markets snapped a four-day losing streak after fresh data showed Australia's household spending accelerated in July.

The benchmark S&P/ASX 200 Index rallied 1 percent to 8,826.50, recovering from its biggest one-day sell-off since April. The broader All Ordinaries Index gained 0.9 percent to close at 9,091.40, led by banking and consumer stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index climbed 0.5 percent to 13,133.20.

Europe

European stocks are mostly higher on Thursday as bond market worries subsided and investors await U.S. jobs data for direction.

The pan European STOXX 600 Index is up 0.5 percent at 549.31 after climbing 0.7 percent on Wednesday.

The German DAX Index is up by 0.6 percent and the U.K.'s FTSE 100 Index is up by 0.2 percent, although the French CAC 40 Index is down by 0.2 percent days before the confidence vote on the French government.

In economic news, a report from Eurostat showed Eurozone retail sales declined more than expected in July largely reflecting a notable fall in food and auto fuel sales.

Retail sales posted a monthly decresae of 0.5 percent, in contrast to the 0.6 percent increase in June. Sales were expected to fall 0.3 percent.

Paris-based Nicox has moved sharply higher after announcing it expects to fully repay all existing financial debts by 2026.

British animal genetics company Genus has also soared after reporting strong annual results with a 24 percent increase in adjusted profit before tax.

Online trading platform IG Group Holdings has also moved to the upside after launching a new share buyback program.

Meanwhile, low-cost airline and travel firm Jet2 has plummeted after the company said it anticipates its EBIT to land towards the lower end of the consensus range.

U.S. Economic News

A report released by payroll processor ADP on Thursday showed private sector employment in the U.S. increased by less than expected in the month of August.

ADP said private sector employment rose by 54,000 jobs in August after jumping by an upwardly revised 106,000 jobs in July.

Economists had expected private sector employment to rise by 65,000 jobs compared to the addition of 104,000 jobs originally reported for the previous month.

"The year started with strong job growth, but that momentum has been whipsawed by uncertainty," said ADP chief economist Dr. Nela Richardson. "A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions."

The Labor Department also released a report on Thursday showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 30th.

The report said initial jobless claims climbed to 237,000, an increase of 8,000 from the previous week's unrevised level of 229,000. Economists had expected jobless claims to inch up to 230,000.

The Labor Department said the less volatile four-week moving average also crept up to 231,000, an increase of 2,500 from the previous week's unrevised average of 228,500.

A separate report released by the Labor Department showed labor productivity in the U.S. surged by much more than previously estimated in the second quarter of 2025.

The Labor Department said labor productivity shot up by 3.3 percent in the second quarter compared to the previously reported 2.4 percent jump. Economists had expected the increase in labor productivity to be unrevised.

Meanwhile, the report said unit labor costs climbed by 1.0 percent in the second quarter compared to the previously reported 1.6 percent growth. The increase in unit labor costs was expected to be unrevised.

With the value of imports spiking, the Commerce Department released a report on Thursday showing the U.S. trade deficit widened more than expected in the month of July.

The Commerce Department the trade deficit shot up to $78.3 billion in July from a revised $59.6 billion in June. Economists had expected the trade deficit to increase to $75.7 billion from the $60.2 billion originally reported for the previous month.

The wider trade deficit came as the value of imports surged by 5.9 percent to $358.8 billion, while the exports rose by 0.3 percent to $280.5 billion.

At 10 am ET, the Institute for Supply Management is due to release its report on service sector activity in the month of August. The services PMI is expected to inch up to 50.5 in August after slipping to 50.1 in July, with a reading above 50 indicating growth.

The Treasury Department is scheduled to announce the details of this month's auctions of three-year and ten-year notes and thirty-year bonds at 11 am ET.

At 12 pm ET, the Energy Information Administration is due to release its report on crude oil inventories in the week ended August 29th.

New York Federal Reserve President John Williams is scheduled to delivery the keynote before an Economic Club of New York Signature Luncheon at 12:05 pm ET.

At 7 pm ET, Chicago Federal Reserve President Austan Goolsbee is due to participate in a moderated Q&A before an mHub Industry Disruptor Series event.