Private sector employment increased by 122,000 jobs in May, according to ADP data released Wednesday, marking the strongest monthly gain since January and exceeding economist expectations.

The employment growth comes as companies continue hiring despite ongoing economic uncertainties. The jobs report contributed to movement in financial markets, with the 10-year Treasury yield approaching 4.5% following the release of the stronger-than-expected employment data.

Separately, retailer Macy's reported its strongest first-quarter growth in four years and raised its full-year guidance. The department store chain attributed the performance to progress in its turnaround strategy, which has focused on refreshing merchandise offerings and increasing customer engagement.

The company's improved outlook reflects management's confidence in its operational changes, even as broader consumer spending patterns remain a focus for retailers navigating economic conditions. Macy's results represent a notable development for the traditional department store sector, which has faced ongoing challenges in recent years.

Both the employment data and Macy's performance indicate areas of strength in the U.S. economy, though analysts continue monitoring various economic indicators for signs of broader trends in employment and consumer spending patterns.