Wall Street: ASX set to edge lower, US stocks gain

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Stocks are modestly higher on Wall Street in afternoon trading after economic updates showed the job market is still cooling, while growth remains resilient.

The S&P 500 rose 0.4 per cent, continuing to chip away at the market’s losses in August. The benchmark index is coming off three straight gains.The Dow Jones shed some of its gains from earlier in the day and was up 0.2 per cent in late trade and the Nasdaq composite rose 0.6 per cent. The Australian sharemarket is set to edge lower, with futures at 5.05am AEST pointing to a dip of 5 points or 0.1 per cent, at the open. The ASXTechnology stocks led Wall Street’s gains. Apple rose 1.

A survey of private-sector employers in the U.S. showed that hiring cooled more than expected by economists. The report reinforces the latest government data on job openings from Tuesday, which also showed that hiring is cooling somewhat. The yield on the 2-year Treasury, which tracks expectations for the Fed, fell to 4.87 per cent from a level of 4.90 per cent prior to the latest GDP release. It stood at 4.89 per cent late Tuesday.

The latest round of economic updates are signalling that the Fed may be able to pause hiking its main interest rate, which it has pushed to its highest level since 2001 in an effort to tame inflation. The central bank held rates steady at its last meeting and investors expect the same at its upcoming meeting in September.

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