US markets were shaken out of their week-long slumber on Thursday as a duo of upbeat snapshots of the economy prompted investors to bid up stocks and the dollar.
The S&P 500, which has been trading sideways following last week’s record run, opened 0.2 per cent higher at 2,415.67, while the Nasdaq Composite gained 0.3 per cent 6,217.71 and the Dow Jones Industrial Average tacked on 0.1 per cent to 21,020.81.
The moves higher come as new data showing a bigger than expected jump in private hiring last month and steady manufacturing growth helped bolster optimism about the US economy following a spate of mixed data in recent weeks.
They also serve as a preview to tomorrow’s May job report from the labour department. Economists are expecting the US economy to have added 180,000 new jobs, following a surprise 211,000 gain in April.
“While ADP has an inconsistent record of accuracy versus the initially-published government data, it often provides a useful guideline to the official report,” said Joshua Shapiro, chief US economist at MFR. “Moreover, recent strength in payroll withholding receipts bodes well for another solid jobs report.”
The dollar also gained, breaking a two-day losing streak to climb 0.3 per cent higher. Elsewhere, yield on the 10-year Treasury rose 3 basis points to 2.232 per cent.