Bonds rallied and stocks stayed steadily lower after ADP reported a contraction in private sector jobs in September.
The yield on the 2-year Treasury note fell to 3.56%. The 10-year yield was down to 4.1%. Yields fell sharply in the wake of the report as bond prices rose.
Dow futures were down 0.3%, while S&P 500 and Nasdaq 100 futures were down 0.5% prior to the report and holding steadily lower.
ADP said the U.S. economy lost 32,000 private sector jobs in September, which was well below expectations for an increase of 50,000 jobs during the month. August’s reading was revised to a decline of 3,000 jobs from an increase of 54,000 following a rebenchmarking of the report based on full-year 2024 results of the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages.
The BLS will not report nonfarm payrolls for September on Friday if the government remains shut down.
The ADP numbers have also taken on added importance amid the Trump administration’s attacks on the BLS including the firing of Commissioner Erika McEntarfer. President Donald Trump withdrew his pick to replace her, E.J. Antoni, on Tuesday.