S&P 500 edges up after ADP jobs beat; credit, tariff risks

The S&P 500 edged higher on Tuesday after ADP reported the private sector added 122,000 jobs in May. Major index ETFs including SPY and VOO traded cautiously as investors weighed private‑credit developments, proposed tariffs and renewed U.S.-Iran exchanges.

ADP’s private payrolls exceeded the 118,000 forecast. The Bureau of Labor Statistics reported job vacancies rose to 7.618 million in April from 6.88 million the prior month. Economists expect Friday’s nonfarm payrolls report to show about 90,000 jobs added in May and the unemployment rate at 4.3 percent.

Concerns in the private credit sector followed a decision by Partners Group to restrict redemptions from one of its funds. KKR fell more than 6 percent in premarket trading, extending a 12‑month decline to about 21 percent; Ares Management declined about 6.25 percent and Blue Owl dropped more than 3 percent. Among S&P 500 components, Lamar Advertising, DoubleVerify, GitLab and Carlyle were among the largest decliners, while Marvell Technology, GameStop, Intel, Post Holdings and Ventas were among the top gainers.

Overnight exchanges between the United States and Iran increased geopolitical risk. Iran said it was exiting talks with the U.S., and Brent crude approached $98 a barrel. The U.S. president phoned Israeli Prime Minister Benjamin Netanyahu and urged a halt to bombardment in Lebanon.

U.S. officials are considering import penalties aimed at more than 60 trading partners on the grounds of goods produced with forced labor. The list of affected countries includes Canada, Mexico, Taiwan and the United Kingdom, and proposed duties would set a 12.5 percent tariff on imports from China, Japan, India and South Korea. In a statement, USTR Ambassador Jamierson Greer wrote: “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

The S&P 500 has risen more than 20 percent from its low earlier in the year, meeting the common threshold for a bull market. Investors will watch upcoming economic releases and corporate earnings for further information on growth, inflation and the Federal Reserve’s likely policy path.