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Weak ADP Data Affects US Stocks, Dow Jones Falls, Trump Pressures Powell Again

Weak ADP Data Affects US Stocks, Dow Jones Falls, Trump Pressures Powell Again

The latest "ADP" employment data from the U.S. was disappointing, causing the Dow Jones index to halt its four-day winning streak. Trump has once again pressured Fed Chairman Powell to cut interest rates quickly.

The Wall Street reports indicate that the ADP data shows private employment numbers in May reached a two-year low, raising concerns about uncertainty in economic and trade policies and their impact on the U.S. economy. Although major indexes in the U.S. markets were mixed on the 4th, the Dow Jones Industrial Average fell by 91.90 points, ending its four-day climb.

Specifically, private job growth in May decreased from 60,000 in April to 37,000, setting a two-year low and significantly underperforming market expectations of 114,000. The past two months' numbers were also much worse than anticipated, reflecting uncertainties in economic policy that affect employers’ hiring willingness.

Additionally, the ISM service sector index for May also plunged from 51.6 in April to 49.9, below the expected 52, and under 50 represents the first contraction for the U.S. service industry in nearly a year, indicating ongoing risks from slowing growth and rising inflation.

Subsequently, Trump took to his “Truth Social” platform to criticize Powell again, stating, "His actions are unbelievable; Europe has already cut rates nine times!"

By the close on the 4th, the Dow Jones index was down 91.90 points, or 0.22%, to 42,427.74; the Nasdaq rose 61.53 points, or 0.32%, to 19,460.49; the S&P 500 was up 0.44 points, or 0.0074%, to 5,970.81; and the Philadelphia Semiconductor Index gained 68.95 points, or 1.39%, to 5,033.35.