Stock market today: S&P 500, Nasdaq climb amid more soft jobs market data
09/05/2024 21:24
Labor data is in focus as the prospect of rate cuts fails to offset growing doubts about the health of the economy.
US stocks gained on Thursday as investors digested more weaker-than-expected labor market data that could help set expectations for both interest-rate cut hopes and the health of the US economy.
The S&P 500 (^GSPC) rose 0.4%, while the Dow Jones Industrial Average (^DJI) hugged the flatline. The tech-heavy Nasdaq Composite (^IXIC) rose 1%, amid bumpy trading for all three benchmarks. The gauges finished Wednesday's volatile session mixed as their sluggish start to September continued.
Private employers in the US posted their smallest monthly hiring growth since January 2021, new data from ADP showed Thursday. Private payrolls grew by about 99,000, well below expectations. Meanwhile, slightly fewer Americans filed a new claim for unemployment benefits last week. On Wednesday, government data showed job openings slumped.
Together, the jobs market data serves as an appetizer for Friday's jobs report for August, crucial to the Fed's policy decision making and closely watched amid hopes for a "Goldilocks" economy.
Stocks are seesawing with the market torn between conflicting impulses as data releases paint a downbeat picture of the economy. Recent soft readings make the case for deeper rate cuts. But they could also be a sign the US is on the brink of recession and a "soft landing" is no longer in the cards.
Traders now see an almost 50-50 chance the Federal Reserve will lower rates by 0.5% at its September meeting.
On the corporate front, earnings from HPE (HPE) and C3.ai (AI) shed some light on prospects for AI growth. C3.ai shares slumped 20% after the enterprise AI software maker posted weak subscription revenue. HPE stock slipped as lower amid disappointment over its profitability.
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Nasdaq, S&P 500 rise as Tesla shares surge 6%
The S&P 500 (^GSPC) gained 0.3% while the tech-heavy Nasdaq Composite (^IXIC) rose 1% as Consumer Discretionary stocks led the gains.
EV maker Tesla (TSLA) rose more than % on plans to launch a full self-driving vehicle in Europe. E-commerce giant Amazon (AMZN) gained 2%. Shares of AI chip giant Nvidia (NVDA) also rose more than 2%.
US stocks were little changed at the open on Thursday after more soft labor data trickled in ahead of Friday's big jobs report, which could influence the Federal Reserve on the size of its expected interest rate cut at its September meeting.
The S&P 500 (^GSPC) hugged the flatline, while the Dow Jones Industrial Average (^DJI) fell slightly. The tech-heavy Nasdaq Composite (^IXIC) erased earlier losses to rise 0.6%.
New ADP data released before the market open showed private employers in the US posted their smallest monthly hiring growth since January 2021. Private payrolls grew by about 99,000, well below expectations.
Along with the monthly jobs report, the labor data could influence the Federal Reserve on the size of the interest rate cut it will likely announce following its two-day meeting this month.
On the corporate front, C3.ai (AI) shares tanked nearly 20% after the enterprise software maker posted weaker-than-expected subscription revenue. Shares of the once high-flying stock are negative for the year.
Meanwhile, HPE (HPE) stock slipped on disappointment over the profitability of its AI serversy.
