On this Thursday, Wall Street remains steady, bracing for a pivotal U.S. job market update set to be released on Friday, which could potentially lead to the interest rate cuts that investors are hoping for.

In early trading, the S&P 500 saw a modest rise of 0.2%. However, the Dow Jones Industrial Average dropped 45 points (0.1%), while the Nasdaq composite experienced a 0.4% uptick.

In the bond market, Treasury yields eased following concerning reports regarding the job market. One study revealed that U.S. employers (excluding government positions) had cut hiring nearly in half last month. Additionally, an uptick in unemployment benefit applications suggests an increase in layoffs.

While these figures don't necessarily signal a recession, they may prompt the U.S. Federal Reserve to contemplate its first interest rate cut of the year at its upcoming meeting. So far, the Fed has refrained from rate cuts, prioritizing inflation control over job market stability.

Lowering interest rates can stimulate the economy and job market, but they come with the risk of exacerbating inflation.

According to Nela Richardson, chief economist at ADP, the job market, which started the year with robust growth, has faced disruptions due to various factors including labor shortages, consumer hesitance, and technological impacts from AI.

A detailed report from the U.S. Labor Department on the job market is anticipated imminently and is expected to heavily influence Fed decisions. Ahead of this, the yield on the 10-year Treasury dipped to 4.19% from 4.22%.

Last month, a dismal jobs report for July, marked by significant downward revisions for the previous two months, rattled financial markets and even led to President Trump firing the head of the reporting agency.

Within the stock market, Salesforce was a major drag despite reporting a stronger-than-expected profit; shares fell 7.4% due to concerns over the sustainability of its performance.

On the other hand, C3.ai plunged by 9% after posting a larger-than-expected loss, prompting Chairman Thomas Siebel to label the results "completely unacceptable" while announcing a new CEO.

In a notable victory, American Eagle Outfitters saw a remarkable 31.5% surge after it more than doubled its expected profits, fueled by a provocative ad campaign featuring actress Sydney Sweeney that sparked widespread media attention.

Meanwhile, Hewlett Packard Enterprise enjoyed a 1% bump following its own promising profit report.

Globally, stock markets presented a mixed picture, with indexes in Asia and Europe showing varied movements: a 1.3% decline in Shanghai and Hong Kong contrasted sharply with a 1.5% gain in Tokyo.