Stock Market Today: Stocks Post Gains on Rising Rate-Cut Hopes
More signs of a cooling labor market boosted bets for a September rate reduction from the Fed.


Stocks caught a tailwind Wednesday as more signs of a cooling labor market boosted market participants' expectations for an earlier-than-expected rate cut from the Federal Reserve. Traders and investors also digested another batch of quarterly earnings and more fresh economic data.
Starting with econ news. The next jobs report lands at the end of the week, but a bad-news-is-good-news reading on the labor market helped lift equities on Wednesday. The private sector added 152,000 jobs last month, according to ADP (ADP), a marked slowdown from the 188,000 hires made in April. Economists were looking for the ADP survey to show the addition of 175,000 jobs last month.
The ADP report "is too unreliable to take seriously," notes Ian Shepherdson, chairman and chief economist at Pantheon Macroeconomics, but it is consistent with his firm's prediction for hiring to slow in the months ahead. "We're sticking with our Homebase model forecast for May of approximately 150,000 and continue to brace for a run of sub-100,000 payroll prints over the summer months," the economist writes.

Sign up for Kiplinger’s Free E-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.
The ADP data follow yesterday's report that job openings fell to a three-year low of 8.1 million in April, below the 8.35 million economists were expecting. Signs the red-hot labor market is cooling lifted expectations for the Federal Reserve to enact its first quarter-point rate cut in September. According to CME Group's FedWatch Tool, the probability of a September rate reduction rose to 59% from 56% a day ago.
In other econ developments, rate-cut expectations were tempered somewhat by a more encouraging reading on the U.S. services sector. Economic activity in the sector grew in May after contracting in April for the first time since December 2022, said the Institute for Supply Management's Services ISM Report On Business.
"The increase in May is a result of notably higher business activity, faster new orders growth, slower supplier deliveries, and despite the continued contraction in employment," Anthony Nieves, chair of the ISM Services Business Survey Committee, said in a media release.
Stocks making moves
In single-stock news, Hewlett Packard Enterprise (HPE) stock rose nearly 11% after the technology company beat top- and bottom-line expectations for its fiscal second quarter and issued a strong outlook thanks to solid demand for its artificial intelligence (AI) servers.
CrowdStrike Holdings (CRWD, +12%) stock was another Wednesday winner following a strong quarterly earnings report. The cybersecurity company not only beat top- and bottom-line expectations for its fiscal first quarter, but CrowdStrike also lifted its full-year forecast. CRWD's upside following a beat-and-raise report is just more of the same for the cybersecurity stock. Indeed, CrowdStrike has been a big winner so far in 2024, rising more than 25% for the year to date through early June.
If a Dollar Tree falls in the forest
Shares in Dollar Tree (DLTR) sold off after the retail chain announced a strategic review of its Family Dollar business, which could include a sale. The move comes less than three months after the company announced it would close 970 underperforming Family Dollar stores.
"A consumer pullback has only exacerbated Dollar Tree's losing battle to competitors such as Walmart and Dollar General," writes Christine Short, vice president of research, at The Short List. "The Family Dollar brand has been the culprit of poor overall results for the last several quarters."
DLTR stock lost 4.9% on the session, making it the second-worst performing issue in the S&P 500 on Wednesday.
As for the main indexes, the broader S&P 500 rose 1.2% to 5,354, while the tech-heavy Nasdaq Composite added nearly 2% to 17,187. The blue chip Dow Jones Industrial Average rose 0.3% to 38,807.
Related content
- All 30 Dow Jones Stocks Ranked: The Pros Weigh In
- Best Dividend Stocks to Buy for Dependable Dividend Growth
- Is Investing In Gold Worth It? How Gold Prices Have Changed
Get Kiplinger Today newsletter — free
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.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
Here's How the Child Tax Credit Could Increase Under Trump
Tax Credits House Republicans released details for President Trump’s ‘one big, beautiful bill,’ and it includes an increased child tax credit.
-
New Overtime Tax Deduction Proposed for Millions Working Extra Hours
Tax Law Some lawmakers and President Trump want to offer overtime tax relief. But will a tax deduction or an exemption help you most?
-
April CPI Keeps Fed Rate Cuts on Hold for Now: What the Experts Say
The April CPI report is unlikely to change the Fed's wait-and-see approach to interest rates.
-
How to Turn Education Planning Into Retirement Planning
Nervous about investing in a 529 plan? If college doesn't pan out, the money can now be rolled over into a Roth IRA, which will grow tax-free until retirement.
-
We Took Them in After the Fire, and Now They Won't Leave
A well-meaning older couple responded to a young couple's plea for help. Now they're looking at having to evict tenants rather than simply asking houseguests to go. How could this happen?
-
How Financial Advisers Can Help Clients Navigate the SSFA
The Social Security Fairness Act's big changes and new opportunities could require adjustments in tax strategy for some Social Security recipients.
-
Six Steps for Financial Advisers to Make Compliant Video Testimonials
Following these steps in order can help ensure you don't end up breaking any rules or having to redo your work.
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade Deal
The two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Why Has the IPO Market Gone Cold?
Hopes were high that 2025 would see strong IPO activity, but the market has recently cooled. Here's why.
-
The Best Investing Advice for College Grads
Getting a head start on investing can be intimidating for new college graduates, but doing so will pay dividends for their financial health down the road.