ADP Reports 90,000 Jobs Added in September; PCE Below Expectations; GDP Grew at 2.2% in Q2 According to BEA's Third Estimate

Stocks spent another session leaning to the downside Tuesday, awaiting something, anything that might light a fire in the belly of the investment community.

They'd have to wait.

The only impactful economic release was the monthly JOLTS report that demonstrated, for the third straight month, that there were fewer job openings than people unemployed.

A slightly brighter picture emerged Wednesday morning when ADP released its National Employment Report for September, showing private employers adding 90,000 jobs during the month.

Hiring accelerated for the first time since May, led by education and health care and leisure and hospitality. Financial activities and professional and business services showed weakness.

Shortly thereafter, the BEA announced its third estimate of GDP for the second quarter.

Real gross domestic product (GDP) increased at an annual rate of 2.2 percent in the second quarter of 2026 (April, May, and June), according to the third estimate released today by the U.S. Bureau of Economic Analysis (BEA). In the first quarter, real GDP increased 2.5 percent (revised). The contributors to the increase in real GDP in the second quarter were consumer spending, investment, and exports. Imports, which are a subtraction in the calculation of GDP, increased.

The BEA also threw some shade on the otherwise upbeat data, announcing that personal consumption expenditures (PCE) increased $190.8 billion (0.9 percent).

Real PCE increased $92.8 billion (0.6 percent at a monthly rate) in August. From the preceding month, the PCE price index for August increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.2 percent.

From the same month one year ago, the PCE price index for August increased 3.4 percent. Excluding food and energy, the PCE price index increased 3.0 percent from one year ago.

Though these readings were flat, they were not increasing, and were below Wall Street estimates, offering some hope that the FOMC might keep the federal funds target rate at the current 3.75-4.00% at the October meeting. Futures markets were relieved on the news, with all three major indices spiking higher as the opening bell approached.

There's nothing like goosing inflation expectations to a level that ensures the actual data will come in below them to pump up markets. Wall Street and the trained seals in the corporate media are notorious for raising or lowering expectations in order to keep the narrative on a positive thrust. This morning's example is another of that kind.

"Be careful what you wish for" is applicable to the current conditions.

At the Close, Tuesday, September 29, 2026:
Dow: 51,349.92, -131.59 (-0.26%)
NASDAQ: 26,797.54, -22.84 (-0.09%)
S&P 500: 7,670.84, -12.85 (-0.17%)
NYSE Composite: 23,709.60, -47.71 (-0.20%)