US Equity Indexes Gain Amid Private Jobs, Economic Activity Reports

04:22 PM EDT, 09/04/2025 (MT Newswires) -- US equity indexes rose at the close on Thursday amid a slump in US private sector job growth as well as expansion of economic activity in the services sector.

The Nasdaq Composite jumped 1% to 21,707.7, with the S&P 500 up 0.8% to 6,502.1 and the Dow Jones Industrial Average up 0.8% to 45,621.3. Consumer discretionary was the top gainer, up 2.3%, followed by communication services and industrials. Utilities was the only decliner, down 0.2%.

US Treasury yields fell, with the 10-year yield down 4.6 basis points to 4.1% and the two-year rate 2.2 basis points lower at 3.5%.

In economic news, US private sector job growth slowed considerably in August, according to the latest ADP Employment Report. The monthly measure of private payrolls showed a 54,000 gain in August, below expectations compiled by Bloomberg for a 68,000 rise.

The latest sign of weakness in the labor market comes a day after the JOLTS report from the Bureau of Labor Statistics revealed that US job openings in July came in much lower than expected.

Furthermore, a report from the Institute for Supply Management showed economic activity in the services sector rising more than expected. The ISM Services Index, which tracks the economic activity of firms across non-manufacturing sectors, rose to 52 in August from 50.1 in July and was higher than the 51 expected by economists tracked by Bloomberg.

Investors' hopes for a rate cut remained high, with traders pricing in 97.4% chances of the US Federal Reserve cutting interest rates in September.

In company news, Amazon (AMZN) shares gained over 4.2% after entering a deal with JetBlue Airways (JBLU) to offer the airline enhanced in-flight connectivity via Project Kuiper's low-Earth orbit satellite internet network. JetBlue (JBLU) plans to roll out Kuiper-facilitated Wi-fi service in 2027.

T Rowe Price Group (TROW) shares gained 5.7%, the top gainer on the S&P 500, after the company said it is collaborating with Goldman Sachs (GS) to offer investment products for retirement and wealth investors. Goldman Sachs (GS) could invest up to $1 billion in T. Rowe common stock, with the intention of owning up to 3.5%. Goldman shares rose nearly 2.4%.

Salesforce (CRM) reported overnight higher fiscal Q2 adjusted net income and revenue, provided fiscal Q3 guidance and revised its fiscal 2026 outlook. Salesforce (CRM) shares were down over 4.8% following downbeat Q3 revenue guidance at midpoint. For fiscal Q3, Salesforce (CRM) expects revenue of $10.24 billion to $10.29 billion. Analysts polled by FactSet expect $10.29 billion.

Gold futures fell 0.83% to $3,605.3, after scaling a new peak of $3,627.70 earlier in the session. Silver futures fell 1.6% to $41.

West Texas Intermediate crude oil futures slumped over 1% to $63.31 a barrel.

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