At the end of the last regular session, U.S. stock indices closed with modest gains. The S&P 500 rose by 0.01%, and the Nasdaq 100 added 0.32%. The Dow Jones Industrial Average fell by 0.22%.

The stock market is struggling to find direction and is showing modest movements as investors avoid making long-term risky bets ahead of the U.S. employment data, which is due tomorrow.

U.S. stock index futures fell by 0.1%, while European stock futures remained flat. Asian indices showed little change. Japanese government bonds rose after a 30-year bond auction turned out better than investors had feared. U.S. Treasury yields stabilized. On Wednesday, bonds rallied across the curve as data showed a slowdown in U.S. services sector activity and private-sector hiring.

Investors latched onto signs of economic weakening, which boosted the appeal of safe-haven assets and strengthened expectations for a less aggressive Federal Reserve monetary policy. This reflects growing confidence that the Fed may soon return to a policy of rate cuts to avoid a recession.

The published services sector business activity index came in significantly below forecasts, indicating a substantial slowdown in growth in this key sector. At the same time, the ADP private-sector employment report showed a smaller-than-expected increase in jobs, adding to concerns about labor market weakening.

Clearly, investors are staying on the sidelines, awaiting U.S. data and the European Central Bank's rate decision. U.S. economic activity has slowed slightly in recent weeks, suggesting that trade policies and uncertainties are taking a toll on the economy.

"Markets will likely view this through the lens of disappointment in real growth," said Florian Ielpo of Lombard Odier Investment Managers. "While this is good news for the U.S. economy in terms of potential rate cuts, the improvements already priced into equities and credit spreads could be challenged by this series of weaker readings."

Swap traders, who predict changes in Fed rates, have priced in higher odds of two quarter-point cuts by the end of the year, in October and December. The probability of a rate cut in September rose to over 90% from about 82%.

Meanwhile, a private survey showed that China's services sector activity grew at a faster pace in May, signaling stabilization in consumer demand, even as higher U.S. tariffs threaten export demand.

In Corporate News:

Shares of Japanese automaker Suzuki Motor Corp. declined after Nikkei reported that the company halted production of the Swift model due to shortages of rare earth elements. Mercedes-Benz Group AG and BMW AG are in talks with suppliers to prevent a shortage of components containing rare materials, with the former reportedly discussing stockpiling. Meanwhile, Ford Motor Co. said that certain parts require more time to clear China's approval process for rare earth metal exports.

As for the S&P 500 Technical Picture:

Today, the main task for buyers will be to break through the nearest resistance at $5975. This would support further growth and open the way for a move to a new level at $5986. An equally important task for the bulls will be maintaining control above $6000, which would strengthen buyer positions. In the event of a downward move amid declining risk appetite, buyers must assert themselves around $5962. A break below this level would quickly push the instrument down to $5946 and open the way to $5933.