US Stocks Climb As Soft Jobs Data Pressures Yields, Helps Tech
Salesforce Inc. is sinking 8.23% after projecting lackluster quarterly sales growth.
US stocks opened slightly in the green on Thursday as data signaled a softening labor market, supporting interest-rate cuts. Tech stocks climbed, even after a string of disappointing earnings, with yields on 10-year Treasuries falling to the lowest since early May.
The S&P 500 Index rose 0.2%. The Nasdaq 100 Index advanced 0.2%, while a gauge of Magnificent Seven companies rallied 0.67%. The Cboe VIX Index was around 16. The 10-year Treasury yield was at 4.19%. Most S&P 500 sectors rose, with consumer discretionary and utilities leading the gainers.
ADP’s private employment numbers rose less than economists expected in August, while Challenger job cuts announcements climbed, touching the highest year-to-date since 2020. ADP chief economist Nela Richardson highlighted a “noticeable slowdown” in hiring during a media call.
Salesforce Inc. is sinking 8.23% after projecting lackluster quarterly sales growth. Figma shares slumped 18% after an underwhelming sales forecast.
HP Enterprise shares fluctuated after it projected a rebound in free cash flow even as the company expects narrower profit margins. In financials, Goldman Sachs Group Inc. is buying $1 Billion of T. Rowe Price Group Inc. stock, sending shares surging 8.1%. American Eagle shares soared 30% after results beat estimates, with demand spurred by the clothing retailer’s Sydney Sweeney ad campaign.
Investor focus turns next to Friday’s payrolls report. Eyes are also on results from Broadcom Inc. after the bell. The stock was among top-10 heaviest-weighted S&P 500 members, accounting for about 2.6% of index market cap. Investors worried about faltering momentum in the artificial intelligence trade are looking for a spark from the company.
