ADP Payroll Data Disappoints, Triggers Volatility as Treasury Yields Retreat

S&P 500 futures increased by 0.3%, while Nasdaq-100 futures saw a 0.5% rise.

According to ADP's report on Wednesday, only 89,000 private payrolls were added last month, significantly lower than the Dow Jones forecast of 160,000 and even fewer than the upwardly revised 180,000 payroll additions reported for August.

Following this data, Treasury yields retreated from their 2007-level highs. The 10-year Treasury yield fell to 4.756%, having previously crossed the 4.8% threshold on Tuesday.

The CBOE volatility index (VIX), known as Wall Street's "fear gauge," briefly reached a five-month high and exceeded its long-term average of 20, indicating growing caution and fear in the market.

The energy sector continues to experience selling pressure this week as the oil market faces a selloff, driven by concerns about demand due to growth projections falling below levels that can sustain high oil demand. Mega-cap growth stocks are under pressure in premarket trading, particularly Apple, following weaker demand for iPhones in the US. Additionally, the real estate sector is facing a selloff due to mortgage rates reaching 7.72%, a level not seen since 2001.

On the weekly Nasdaq chart, a double top pattern has been confirmed, with the neckline located in the 14,250-14,500 area. A breakout above these levels could lead the price toward the 200-day moving average on the daily chart and the lower boundary of the current long-term bullish channel.