Recession fears are back in play as investors offload risky stocks ahead of Friday’s NFP data.
The S&P 500 index closed lower on Wednesday on renewed recession worries after the US economy released another concerning number. This time it was the ADP report showing that private employers added 145,000 jobs in March – below estimates for 205,000 hires.
The gradual downshift was seen by analysts as fairly expected news and one of the first signs that the economy is producing cooler data, largely a result of the Federal Reserve’s rate hike campaign.
The weak ADP report followed an underwhelming job openings figure published Tuesday.
What lies ahead is the nonfarm payrolls report, or simply the jobs number. Slated for release on Friday, the print will show how many Americans found jobs in March. It will also help the Fed gauge the overall health of the economy as it plans its next rate hike move.
