US markets closed higher on Wednesday as investors weighed reports that the US and Iran may be nearing a peace deal, while strong earnings from tech companies fueled the artificial intelligence trade. Traders took support as Payroll processor ADP released a report showed private businesses in the US added a net 109,000 jobs in April 2026, the largest increase since January 2025 and above market forecasts of 99,000. The stronger-than-expected data still reflects the Fed’s described low-hire, low-fire labor market, where employers avoid layoffs but have significantly reduced hiring amid slower labor force growth due to lower immigration. The service-providing sector led gains with 94,000 jobs, driven by education and health services (61,000), trade, transportation and utilities (25,000), and financial activities (9,000). The goods-producing sector contributed 15,000 jobs, mainly from construction (10,000). Small businesses were the top contributors, adding 65,000 jobs, followed by large companies (42,000), while medium-sized firms added 2,000.
Nasdaq gained 512.81 points or 2.03 percent to 25,838.94, S&P 500 added 105.9 points or 1.46 percent to 7,365.12 and Dow Jones Industrial Average increased 612.34 points or 1.24 percent to 49,910.59.
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