Trading volume was light on Wednesday, with the New York Stock Exchange closing early at 1 pm ET. The exchange will remain closed on Thursday for Independence Day.
Investors analyzed Wednesday morning’s data, which indicated a weakening economy ahead of Friday’s June jobs report. ADP reported less private payroll growth than expected in June, and weekly jobless claims were higher than economists predicted.
The Institute for Supply Management’s reading of service sector activity, released later in the morning, was significantly weaker than anticipated and indicated a contraction.
These reports might concern investors about the economy’s health, but stocks found support from falling bond yields. Traders grew hopeful that the Federal Reserve has enough evidence of economic tightening to start cutting interest rates.
The rate on the 10-year US Treasury fell for the second consecutive day on Wednesday.