Stocks Open Mixed as Investors Weigh Cooling Labor Market, Fed Hearing

U.S. stocks opened with a split tone Thursday as investors digested a weaker-than-expected private hiring report, fresh political pressure on the Federal Reserve, and uneven corporate earnings. At the opening bell, the Dow Jones Industrial Average slipped 41.10 points, or 0.09%, to 45,230.1. The S&P 500 gained 7.54 points, or 0.12%, to 6,455.80, while the Nasdaq Composite advanced 37.90 points, or 0.18%, to 21,535.6.

The early moves followed a closely watched ADP Employment Change report, which showed private-sector hiring slowed to just 54,000 in August, missing expectations for 65,000. The soft print reinforced signs of a cooling labor market, supporting market bets that the Federal Reserve could cut interest rates later this year. Construction and leisure sectors posted gains, while manufacturing and trade showed weakness, underscoring the uneven state of the recovery.

Attention also turns to Washington, where President Donald Trump’s economic advisor Stephen Miran faces Senate questioning on his nomination to the Fed’s governing board. In his opening remarks, Miran stressed, “Independence of monetary policy is a critical element for its success,” amid concerns over White House influence on the central bank.

Corporate earnings added to the cautious tone. Figma, the design software company that went public in July, dropped sharply after its first earnings missed high expectations. Revenue growth of 41% fell short of investor hopes, while heavy spending on artificial intelligence weighed on margins. Shares tumbled 15% in after-hours trading, hitting post-IPO lows.

Commodity markets reflected similar unease. Crude oil futures for October delivery fell 1.36% to $63.10, pressured by global growth concerns, while gold futures dropped 0.91% to $3,602.50, retreating as investors rebalanced positions after recent gains.

Still, optimism in technology continued to underpin sentiment. A new note from Wedbush Securities pointed to what analysts called the “next stage” of the AI revolution, driven by a wave of capital expenditures from Microsoft, Amazon, Google, and Nvidia. With Big Tech spending nearly $350 billion this year, the firm highlighted Palantir, Alphabet, and Microsoft among its top picks into year-end.

For now, investors are weighing whether slowing job growth signals a broader economic cooling or a temporary pause, with Friday’s official payrolls report expected to offer further clarity. Until then, markets appear set for a session marked by measured optimism in technology, countered by cautious positioning in cyclical sectors.

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