S&P 500 Hits Record High Ahead of Critical Jobs Report

US equities advanced Thursday as investors positioned for Friday's pivotal employment data, with the S&P 500 notching a fresh all-time high at 6,502.08. The Nasdaq Composite and Dow Jones Industrial Average both gained approximately 1%, building on Wednesday's modest rally.

Labor market indicators showed mounting weakness, with ADP reporting just 54,000 private sector jobs added in August—well below forecasts. Weekly jobless claims surged to their highest level since June, while ISM services data revealed contracting employment for the third consecutive month.

The deteriorating employment picture has cemented expectations for Federal Reserve action, with markets now pricing in a 97% probability of a September rate cut. This marks a significant increase from the 91.7% odds implied prior to Wednesday's softer-than-expected JOLTS report.