S&P 500 futures give up gain after weak ADP jobs report raises worries about the economy: Live updates

U.S. stock futures pared back gains on Wednesday after private sector hiring hit its lowest level in more than two years.

Dow Jones Industrial Average futures hovered around the flatline. S&P 500 futures and Nasdaq 100 futures were also flat.

The Dow appeared on track for its fifth day of gains until weak jobs data knocked futures into the red. A report from payrolls processing firm ADP showed that payrolls increased only 37,000 for the month, less than the downwardly revised 60,000 in April and below the consensus forecast of 110,000 that economists polled by Dow Jones were expecting.

The report casts a pall over Friday’s all-important government nonfarm payrolls report, which economists currently expect to show an increase of 125,000 jobs for May, according to a Dow Jones survey.

Wall Street is coming off a solid session, led by strong gains in tech. The 30-stock Dow rose more than 200 points, or 0.5%, for its fourth positive day. The S&P 500 and the Nasdaq Composite advanced 0.6% and 0.8%, respectively. Nvidia rose nearly 3%, surpassing Microsoft to become the world’s most valuable public company once more.

Nvidia shares continued its gains in the premarket Wednesday, along with Broadcom. The artificial intelligence darling rose almost 1%, while Broadcom gained 0.5%. Meta Platforms and Alphabet also ticked higher before the bell.

After Tuesday’s gains, the S&P 500 now sits less than 3% from its 52-week high. The Nasdaq, meanwhile, is less than 4% from its recent high, and the Dow is less than 6%.

The recent gains have investors increasingly confident stocks have turned a corner on tariffs, especially after a series of reversals from President Donald Trump convinced traders the White House is mainly wielding high levies as a negotiating tool. A federal court striking down Trump’s tariffs just last week added to hopes the market has priced in the worst of the tariffs, though they were later reinstated temporarily by an appeals court.

Futures also appeared to look past Trump’s latest remarks. Earlier on Wednesday, he said dealing with Chinese President Xi Jinping has been “extremely hard.”

The increasingly muted response to trade headlines has more market watchers certain there’s further upside for stocks. This week, Deutsche Bank’s chief U.S. equity and global strategist Binky Chadha raised his year-end S&P 500 forecast.

“We have a quiet week, and markets are rallying,” Tom Lee, head of research at Fundstrat Global Advisors, said Tuesday on CNBC’s “Closing Bell.” “I think the risk is now of a substantial leg-up rally from here.”