SPX: S&P 500 Drops Further on New Economic Slowdown Indicators

Fears of a recession have returned as investors dump risky stocks ahead of Friday's NFP report.

The S&P 500 index closed lower on Wednesday due to renewed recession concerns following the release of another troubling economic indicator. This time, it was the ADP report indicating that private employers added 145,000 jobs in March, which was less than the anticipated 205,000 new positions.

Analysts viewed the gradual decline as expected and one of the first indications that the economy is producing cooler data, largely due to the Federal Reserve's rate hike campaign. The weak ADP report followed Tuesday's disappointing job openings report.

The nonfarm payrolls report, or simply the jobs number, is forthcoming. The print, scheduled for release on Friday, will reveal how many Americans found employment in March. In addition, it will aid the Fed in assessing the overall health of the economy as it plans its next rate hike.