Overnight on Wall Street, the benchmark S&P 500 index and the Dow ended lower after a short-lived boost from a string of economic reports faded, while the Nasdaq finished slightly higher.

The S&P 500 lost 0.3 per cent, the Dow Jones slid by 0.5 per cent and the Nasdaq added 0.3 per cent.

Markets were edgy ahead of the release of the comprehensive non-farm payrolls data - which will likely set the stage for the Federal Reserve to begin cutting rates later this month.

Earlier in the session, Wall Street’s main indexes gained as reports helped allay concerns of labor market deterioration. The Institute for Supply Management survey showed services sector activity expanded in August while jobless claims declined last week, according to Labor Department data.

Eight out of 11 S&P 500 sectors lost ground, led by declines in healthcare and industrial stocks. The consumer discretionary sector led the gainers, driven partly by Tesla.

September has been historically weak for US equities, with the S&P 500 down about 1.2 per cent for the month on average since 1928. The index is down more than 2.5 per cent so far this week and tech stocks have fallen about 4.8 per cent.

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In August, US private employers hired the fewest workers since January 2021 and data for the prior month was revised lower, potentially hinting at a sharp labor market slowdown, according to the ADP National Employment Report.

Tesla gained nearly 5 per cent after the electric-vehicle maker said it will launch its full self-driving advanced driver assistance software in the first quarter next year in Europe and China, pending regulatory approval.

Frontier Communications slumped 10 per cent after Verizon said it would buy the company in an all-cash deal worth $US20 billion. Verizon shares dipped 0.4 per cent.