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STORY: U.S. stocks ended higher on Wednesday – after selling off the day prior – as investors believed the latest jobs data indicated a softening labor market.

The Dow gained four-tenths of a percent, the S&P 500 climbed eight-tenths and the Nasdaq jumped nearly 1.4%.

The ADP National Employment Report, which showed private payrolls increased less than expected in September, was cheered by investors who think a loosening labor market could push the Federal Reserve to stop raising interest rates.

But Anna Rathbun, Chief Investment Officer at CBIZ Investment Advisory Services, notes that just one day earlier the JOLTS report showed job openings unexpectedly grew in August, reflecting a still-tight labor market.

“Whenever I see stuff like this, it tells me that the data are not consistent in telling us a certain direction of the economy. [FLASH] So it's really important to be looking at trends rather than take one data point to make certain assumptions - about especially something like the Fed rates. So the 10-year yield and the 2-year yield have been diving. The 10-year yield has stopped, but 2-year yield continues to dive and that is because it is expecting the Fed to maybe stop raising rates, maybe cut rates, just off of this ADP data point. And that is not sufficient - especially because the Fed looks at JOLTS more than it does ADP.”

Investors will now look to Friday’s non-farm payrolls report for clues on what the Fed might do next.

Among individual movers, shares of several megacap companies ended higher, with Tesla climbing nearly 6%, and Amazon and Microsoft each gaining more than 1.5%.