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US markets end higher on Wednesday on upbeat economic data

04 Oct 2018 Evaluate

The US markets ended higher on Wednesday even though market pared earlier gains. Besides, the Dow Jones Industrial Average settled at an all-time high. The gains were supported by upbeat economic data, but markets pared gains as the data also raised concerns about the outlook for interest rates. The payroll processor ADP released a report showing stronger than expected private sector job growth in the month of September. ADP said private sector employment jumped by 230,000 jobs in September after climbing by an upwardly revised 168,000 jobs in August. Street had expected employment to increase by about 185,000 jobs. Meanwhile, investors eyeing the Labor Department’s monthly jobs report including both public and private sector jobs, which is scheduled to release on Friday. The report is expected to show employment climbed by about 188,000 jobs in September after jumping by 201,000 jobs in August.

Besides, a separate report from the Institute for Supply Management showed an unexpected acceleration in the pace of growth in US service sector activity in September. The ISM said its non-manufacturing index climbed to 61.6 in September from 58.5 in August, with a reading above 50 indicating growth in the service sector. Economists had expected the index to dip to 58.0. With the unexpected increase, the ISM said the non-manufacturing index reached its highest level since the inception of the composite index in 2008.

Dow Jones Industrial Average jumped 54.45 points or 0.20 percent to 26,828.39, Nasdaq gained 25.54 points or 0.32 percent to 8,025.08 and the S&P 500 was up by 2.08 points or 0.07 percent to 2,925.51.

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