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Stocks gain as markets weigh soft ADP report

Stock futures (YM=F, ES=F, NQ=F) are trending higher Wednesday as markets digest the latest jobs data. The May ADP employment data was weaker than expected, pointing to signs of a cooling labor market. Yahoo Finance's Brad Smith and Madison Mills break down the details of the report, discussing how it is impacting market movements and fueling Federal Reserve rate cut hopes.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video transcript

Our top story.

Stock futures rising after the latest jobs data came in weaker than expected for the month of May, 152,000 private payrolls were added last month versus the 175,000 that Wall Street was expecting.

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The April figure was also revised lower.

Now this is a further sign of a softening in the labour market, and investors are hoping this could push the Fed to cut rates sooner rather than later.

Here, UH, a few interesting nuggets within this report, and one of them is where job changers, those who are looking to perhaps make a hop, get a higher pay grade and perhaps be able to outpace inflation there.

We've only seen that move higher by about 7 8% 7.8% essentially in the median change and an you will pay There.

You compare that to job stayers, where it's at about 5% right now, so that one of the interesting nuggets that we were able to pull out from this report and that is what so many of the guests who have come on our shows have been saying, is the critical piece to watch what is happening in terms of the wage gains because that is what determines the course of inflation, which determines what the Fed is going to do moving forward.

Having said that, one of the guests we're going to speak with later had said that if we got a softness in the AD P print that was going to lead to a little bit of a sell off in yields, we saw that very briefly and then immediately another return.