• Stocks closed higher on Wednesday as traders absorbed jobs data and awaited the start of the Jackson Hole conference.
• Revised employment data show that the economy added 818,000 fewer jobs than originally forecast.
• Investors are waiting for Powell to issue further guidance on Fed policy in Jackson Hole on Friday.

U.S. stocks rose on Wednesday as traders awaited the start of the Federal Reserve’s economic conference in Jackson Hole and absorbed last year’s revised employment data.

Major stock indices were higher, while US Treasury yields fell in Wednesday trading.

The Bureau of Labor Statistics released revised employment figures for the period April 2023 to March 2024. They showed that the U.S. economy created 818,000 fewer jobs during that period than originally reported.

The new figures, which reflect a weaker labor market over this period, have boosted confidence that the Fed is ready to ease monetary policy and possibly make even deeper interest rate cuts than previously thought.

According to the CME FedWatch tool, markets believe the probability that the Fed will cut interest rates by 50 basis points in September is 39 percent, down from less than 30 percent earlier this week.

“If you’re one of those who support a September rate cut, then this data is the deciding factor for the Fed to cut rates,” Jamie Cox, managing partner of Harris Financial Group, said in a statement.

Investors were also reassured by the minutes of the Fed’s recent meeting, which said that the majority of FOMC members believe it is “probably appropriate” to begin cutting interest rates in September as long as economic data continues to be “roughly in line with expectations,” the minutes said.

This is considerably more dovish than the tone that central bankers have adopted all year. Fed Chairman Powell had previously stated that the central bank needed more confidence that inflation was back on track before it could ease monetary policy.

“Nevertheless, overall the FOMC appears confident enough – and concerned enough – that initiating the easing cycle will help ensure that economic conditions, particularly the labor market, do not deteriorate at a noticeable pace,” added Quincy Krosby, chief global affairs strategist at LPL Financial.

Investors are awaiting Powell’s speech at the Fed’s annual meeting in Jackson Hole on Friday, where the central bank chief is expected to provide further guidance on policy through the end of the year.

Here are the US indices at the close of trading on Wednesday at 4:00 p.m.:

Here’s what else is happening today:

For commodities, bonds and cryptocurrencies:

• Oil futures fell. West Texas Intermediate crude fell 1.7 percent to $71.93 a barrel. Brent crude, the international benchmark, fell 1.45 percent to $76.09.
• The price of gold rose slightly to $2,552 an ounce.
• The yield on 10-year government bonds fell two basis points to 3.795%.
• The Bitcoin price rose 3.4% to $61,563.