Dow Jones, S&P 500, Nasdaq end at day's high ahead of crucial jobs report

Benchmark indices on Wall Street closed with strong gains on Thursday, September 4, ahead of an all important jobs report, which will more or less cement whether or not the US Federal Reserve cuts interest rates during its policy meeting on September 16-17.

The Dow Jones ended with gains of over 350 points, the S&P 500 was higher by 0.8% and closed above 6,500, while the Nasdaq registered gains of close to 1%. All three benchmark indices closed at the day's high.

A slew of macro data reported on Thursday indicated that the US labor market continues to cool, a point highlighted by Fed Chair Jerome Powell during his Jackson Hole address last month. Private payroll figures reported by the ADP showed hiring figures to be 54,000, below estimates and nearly half of the July figures.

Hiring plans of US companies also fell to the lowest in any August since data is being tracked from 2009, as per Challenger, Gray & Christmas. Initial jobless claims increased by 8,000 from the prior week to 2,37,000, the highest since June. Trade deficit also widened as imports rose in July ahead of Donald Trump's reciprocal tariffs took effect.

Post all of this macro data, the probability of the US Central Bank cutting interest rates in two weeks from now, stood at 99.4%, according to the CME FedWatch tool.

Estimates for today's non-farm payrolls data are for an addition of 75,000 and will be the first figures reported under the new Bureau of Labor Statistics chief EJ Antoni, who was nominated by President Trump after he fired the previous commissioner last month over extreme downward revisions made to the May and June figures.

Elsewhere, the US Dollar index continues to remain above the mark of $98, Brent Crude remains around $67 ahead of the OPEC+ meet over the weekend, while Gold prices remain at elevated levels on hopes of an interest rate cut.