FILE – Signs at the intersection of Broad and Wall Streets stand near flags flying from the New York Stock Exchange on Sept. 4, 2024, in New York. (AP Photo/Peter Morgan, File)

New York, United States — Stock markets struggled and the dollar mostly fell Thursday on the eve of a key US jobs data release that could shed light on the size of potential Federal Reserve interest-rate cuts and the health of the world’s biggest economy.

Global equities trading has calmed after earlier this week experiencing its most tumultuous days since early August.

Both the Dow and S&P 500 retreated, while the Nasdaq rose modestly.

All eyes will be on Friday’s US non-farm payroll figures, with July’s big miss on labor creation being one of the catalysts for a brief-but-dramatic stock sell-off.

READ: Benign inflation report perks up shares

Kelvin Wong, senior analyst at traders OANDA, said “market participants are fearful that the US Federal Reserve has been late in enacting the interest rate cut cycle in the US.”

eToro US Investment Analyst Bret Kenwell said a disappointing jobs report Friday could shift expectations towards a 50-basis-points rate cut.

“A 50-basis-point cut may seem like welcoming news for equity bulls,” he said in a note to clients.

“However, if the Fed feels forced to go right to a 50-basis-point cut, it may suggest there’s a bigger worry about the jobs market than previously acknowledged.”

Sentiment was not improved by August private-sector hiring figures, released Thursday, coming in below expectations, with July figures revised lower.

Payroll firm ADP said private-sector employment rose by 99,000 last month, much lower than a consensus forecast by analysts of 150,000, according to Briefing.com.

Separate unemployment data showed dips in first-time and continuing claims for jobless benefits, but still running at a higher level than in previous months.

Briefing.com analyst Patrick O’Hare said “layoff activity remains relatively tame; however, so does hiring activity, evidenced by the elevated stickiness of continuing jobless claims.”

READ: Oil prices, dollar fall as market awaits US jobs data

The Institute for Supply Management’s services index crept up to 51.5 percent last month from 51.4 percent in July, slightly topping estimates.

European stocks also ended the day lower, Frankfurt’s stock market giving up its gains just before the close.

German industrial orders rose for a second consecutive month in July, official data showed Thursday, but analysts said that was not enough to brighten the outlook for struggling Europe’s top economy.

Tokyo closed lower as exporters were weighed by a strengthening yen, while there were also losses in Hong Kong.

In China, a report said officials were considering cutting interest rates on more than $5 trillion of mortgages in a bid to support homeowners and ease pressure on the banking system.

New York – Dow: DOWN 0.5 percent at 40,755.75 (close)

New York – S&P 500: DOWN 0.3 percent at 5,503.41 (close)

New York – Nasdaq Composite: UP 0.3 percent at 17,127.66 (close)

London – FTSE 100: DOWN 0.3 at 8,241.71 (close)

Paris – CAC 40: DOWN 0.9 percent at 7,431.96 (close)

Frankfurt – DAX: DOWN 0.1 percent at 18,576.50 (close)

Tokyo – Nikkei 225: DOWN 1.1 percent at 36,657.09 (close)

Hong Kong – Hang Seng Index: DOWN 0.1 percent at 17,444.30 (close)

Shanghai – Composite: UP 0.1 percent at 2,788.31 (close)

Dollar/yen: DOWN at 143.42 yen from 143.74 yen on Wednesday

Euro/dollar: UP at $1.1110 from $1.1082

Pound/dollar: UP at $1.3180 from $1.3147

Euro/pound: FLAT at 84.29 pence

Brent North Sea Crude: FLAT at $72.69 per barrel

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West Texas Intermediate: DOWN 0.1 percent at $69.15 per barreldavinci’s gold

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