U.S. stock futures slipped early Wednesday as investors reacted to weaker-than-expected employment data and took a breather following a strong run in equities.

The dip came after payroll processor ADP reported an unexpected decline in private sector jobs for June, with employment falling by 33,000 positions. The May figure was also revised downward to a gain of 29,000. Economists had forecast a solid increase of 95,000 jobs for June, making the new data a notable miss.

“While we’re not seeing widespread layoffs, companies are clearly pulling back on hiring and not rushing to fill vacant roles,” said ADP Chief Economist Dr. Nela Richardson, pointing to a cooling labor market.

The jobs report added to market uncertainty, with futures for the Dow Jones, S&P 500, and Nasdaq all trading slightly in the red during premarket hours.

Tuesday’s trading session ended on a mixed note. The Dow surged 400 points, climbing to 44,494.94 and notching its best close in over four months. However, the Nasdaq dropped 0.8% to 20,202.89 and the S&P 500 ticked down 0.1% to 6,198.01, snapping a string of record highs.

Traders are also watching developments on Capitol Hill. The Senate narrowly passed President Trump’s ambitious tax and spending legislation, with Vice President J.D. Vance casting the tie-breaking vote. The package now heads to the House, where it faces further scrutiny.

Economic data was mixed. The Institute for Supply Management reported a slight rise in manufacturing activity, with its PMI climbing to 49.0 in June from 48.5 in May — still in contraction territory. In contrast, the Labor Department surprised markets with a report showing job openings increased to 7.77 million in May, well above expectations.

Sector movements remained uneven. Homebuilder stocks led gains, pushing the Philadelphia Housing Sector Index up 3.3%. Oil services followed with a 2.9% rise. On the downside, software and natural gas stocks retreated, reflecting investor caution across tech and energy names.

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