US benchmark indices posted strong gains on Thursday, with the Dow Jones rising over 350 points, the S&P 500 gaining 0.80% to close above 6,500, and the Nasdaq up nearly 1.00%. All three indices closed at daily highs ahead of an important jobs report that could influence the Federal Reserve's interest rate decision at its upcoming policy meeting.

Economic Indicators

Multiple economic indicators showed a cooling labor market:

• ADP private payroll data revealed 54,000 new hires, below estimates and roughly half of the previous month's figures.
• US company hiring plans dropped to the lowest August level since tracking began in 2009.
• Initial jobless claims rose by 8,000 to 237,000, the highest since June.
• The trade deficit widened as imports increased.

Following this data, the probability of a Fed rate cut stood at 99.40% according to the CME FedWatch tool.

Upcoming Jobs Report

Non-farm payroll estimates project 75,000 job additions, marking the first report under new Bureau of Labor Statistics chief EJ Antoni.

Market Indicators

• The US Dollar index remained above 98.00
• Brent Crude traded around 67.00 ahead of the OPEC+ weekend meeting
• Gold prices stayed elevated on rate cut expectations

Investors will be closely watching the upcoming jobs report for further insights into the labor market and potential implications for Federal Reserve policy.

Wall Street kicked off the trading session on a somber note Tuesday as investors returned from an extended holiday weekend. The market's main indexes opened lower, grappling with uncertainties surrounding President Donald Trump's tariff policies and anticipation of key economic reports.

Market Performance

The three major U.S. stock indexes all registered significant declines at the opening bell:

Factors Influencing the Market

Two primary factors appear to be weighing on investor sentiment:

1. Tariff Legality Concerns: Questions about the legality of President Trump's tariffs have emerged as a significant source of market anxiety. These concerns highlight the ongoing uncertainties in U.S. trade policy and its potential impact on global commerce.

2. Upcoming Economic Reports: Investors are keenly awaiting key economic data releases. These reports are expected to provide crucial insights into the health of the U.S. economy and could potentially influence future market trends and Federal Reserve policy decisions.

The combination of these factors has created a cautious atmosphere in the market, prompting investors to adopt a more defensive stance at the start of the trading session.

Market Outlook

As the day progresses, market participants will likely keep a close eye on any developments regarding the tariff situation and eagerly anticipate the release of the economic reports. These elements could play a significant role in determining the market's direction in the short term.

Investors and analysts will be watching closely to see how these concerns unfold and impact various sectors of the economy. The market's response to these challenges will be crucial in shaping investor sentiment and market dynamics in the coming days.