Another report showed that the US labor market cooled, strengthening the possibility of the Fed cutting interest rates in September.

The number of new jobs in the private sector in the US increased more slowly than forecast in May 2024, another signal that the labor market is cooling and further strengthens the possibility that the Fed will soon lower interest rates.

According to a report from payroll processing company ADP, private companies added 152,000 jobs in May 2024, lower than economists' forecast of 175,000 jobs and also much lower than 188,000 jobs. jobs in April. This is the lowest number since January 2021.

Along with the slowdown in new jobs, wage growth remained at 5%, marking three consecutive months of remaining at this level.

After ADP's report, investors will wait for the employment report from the US Bureau of Labor Statistics. Reports from ADP can sometimes provide a glimpse of what to expect in reports from the US Bureau of Labor Statistics, although both figures are compiled differently. In April 2024, ADP's report showed that the private sector added 188,000 jobs, while the US Bureau of Labor Statistics report only added 167,000 jobs.