Stock Market Today: Nasdaq Soars as Bond Yields Retreat
The main indexes closed higher as a big miss in the ADP payrolls report had Treasury yields pulling back from recent highs.


Stocks opened higher Wednesday as bad-news-is-good-news jobs data lowered expectations for another rate hike at the next Fed meeting. Sentiment also got a lift as Treasury yields retreated, though one benchmark notably lagged behind its peers as oil prices plummeted.
ADP this morning said that the U.S. added 89,000 private payrolls in September, the slowest pace of growth since January 2021 and well below economists' forecasts for a gain of 150,000. Additionally, year-over-year wage growth decelerated to 5.9% from the 6% increase seen in August.
"The ADP release should always be taken with a pinch of salt ahead of the U.S. jobs report on Friday and I have no doubt today's is being viewed no differently," says Craig Erlam, senior market analyst at OANDA. "If it can be replicated later this week then people will certainly sit up and take notice, but at this moment, it's just another ADP number that will probably be well off the nonfarm payrolls report."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Rate-hike expectations, oil prices drop
While the ADP report signaled cooling in the labor department, activity in the services sector remains strong. Data from the Institute for Supply Management (ISM) showed its services sector index fell to 53.6 in September from 54.5 in August, though it held above the 50 level that indicates expansion.
Today's data helped lower the probability the Fed will raise interest rates by a quarter-percentage point at its November meeting. According to CME Group, futures traders are now pricing in a 20% chance for a rate hike next month, down from yesterday's reading of 28.2%.
Additionally, Treasury yields retreated from their decade-plus highs, with the yield on the 2-year government note falling 9.4 basis points to 5.054% and the yield on the 10-year bond sinking 6.9 basis points to 4.733%. (A basis point = 0.01%.)
This had an outsized effect on the rate-sensitive Nasdaq Composite, which rallied 1.4% to 13,236, while the broader S&P 500 rose 0.8% to 4,263. The blue chip Dow Jones Industrial Average underperformed, adding 0.4% to 33,129 as oil major Chevron (CVX) tumbled 2.3%.
The energy sector (-3.3%) took a big hit today as U.S. crude futures fell 5.6% to $84.22 per barrel, their lowest settlement in a month. In addition to Chevron, energy stocks Occidental Petroleum (OXY, -3.9%) and Exxon Mobil (XOM, -3.7%) were two of Wednesday's notable decliners.
Apple gets a rare downgrade on valuation concerns
In other single-stock news, Apple (AAPL) opened lower this morning before closing up 0.7% after KeyBanc analyst Brandon Nispel downgraded the tech giant for the first time in two years. Specifically, Nispel lowered his rating on AAPL stock to Sector Weight from Overweight, the equivalents of Hold and Buy, respectively, citing expectations of slowing iPhone sales in the near term.
Additionally, Nispel pointed to Apple's valuation as another reason for the downgrade. Although shares are down nearly 12% since late July, they are still trading at 29 times forward earnings, well above Apple's five-year average of 24. "We believe in order to justify upside to shares, peak valuations need to be applied or its growth profile needs to inflect higher," the analyst wrote in a note to clients.
Downgrades for Apple are rare, with the majority of Wall Street bullish on the blue chip stock. Of the 45 analysts covering AAPL tracked by S&P Global Market Intelligence, 29 say it's a Strong Buy or Buy vs eight who have it at Hold and three who call it a Sell or Strong Sell. This works out to a consensus Buy recommendation.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
The Most Popular Apps for Retirement Planning in 2025
A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market Today
Another down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market Today
Apple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have Today
Sherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have Today
UNH stock was a massive market beater for ages — until it wasn't.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market Today
We've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market Today
Quietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.