S&P 500, Nasdaq 100 face profit-taking as ADP misses at 98,000

Profit-taking is sweeping US equity benchmarks as traders reposition ahead of Thursday's early Non-Farm Payrolls release.

The S&P 500, Nasdaq 100 and Dow Jones 30 faced selling pressure Wednesday as traders locked in gains ahead of Thursday's early Non-Farm Payrolls release.

ADP data released Wednesday showed private-sector employers added 98,000 jobs in June, below expectations, the payroll processor said in its monthly report.

The ADP miss followed a JOLTS report earlier this week that showed US job openings surged to 9.4 million in May, well above the 8.9 million consensus, according to Bureau of Labor Statistics data. The conflicting signals have left traders uncertain about the labor market's trajectory ahead of the official NFP release.

US markets will be closed Friday for the Independence Day holiday, making Thursday's session the sole window for traders to adjust positions after the NFP data. The early release of the report adds to the volatility risk, with the BLS having taken steps to address previous data release failures, though a watchdog report said more safeguards are needed.

The profit-taking was concentrated in the technology-heavy Nasdaq 100 and the broader S&P 500, which had led the market higher in recent months. The divergence between the ADP miss and the stronger JOLTS data has created an unusually wide range of outcomes for Thursday's report, with traders pointing to the conflicting signals as a reason to reduce exposure ahead of the data.

The BLS has implemented fixes to prevent a repeat of previous data release failures, but the Government Accountability Office said additional safeguards are required to ensure timely and accurate dissemination of the NFP report, according to a recent watchdog report.

This article is for informational purposes only and does not constitute investment advice.