Risk appetite returned to Wall Street on Thursday, as signs of labor market cooling in August cemented expectations that the Federal Reserve will begin cutting interest rates at its Sept. 17 meeting.

The ADP National Employment Report showed just 54,000 jobs were added in August, a steep decline from 106,000 in July and well below the 65,000 median forecast.

With job creation slowing, economists now expect Friday's official nonfarm payrolls report to show just 75,000 new jobs—nearly flat from July's already-soft 73,000 and far from the pace typically needed to sustain economic growth.

Rate-cut odds surged in response. Markets are now pricing in a nearly 100% chance the Fed will deliver a 25-basis-point cut this month, according to CME FedWatch Tool data. Odds for a second cut before year-end climbed to 90%. Treasury yields also eased, with the 30-year yield falling to 4.87%.

The S&P 500 rose 0.4% to 6,470, inching closer to its record high of 6,508 set last week. The Dow Jones Industrial Average added 0.5% to 45,480, while the Nasdaq 100 gained 0.5%.

In the industrial sector, GE Aerospace (NYSE:GE) also made headlines, advancing 2% to fresh record highs. The company announced a $300 million investment and strategic partnership with Beta Technologies, a maker of electric aircraft and propulsion systems.

As equity sentiment improved, safe-haven assets lost steam. Gold slipped 0.2% to $3,550, on track to snap a seven-day winning streak.

Meanwhile, Bitcoin (CRYPTO: BTC) dropped more than 2% to trade below $110,000.

Thursday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

S&P 500’s Top 5 Gainers

S&P 500’s Top 5 Losers

Now Read:

• Weak Jobs Cement Fed Rate Cuts–And Wall Street Eyes Records Again
  

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