US stocks were little changed on Thursday after a profitable session fueled by Big Tech companies, as investors weighed new labor data amid rising hopes for an interest rate cut.
The S&P 500 (^GSPC) was hovering near the flat line in the wake of a record close. The Dow Jones Industrial Average (^DJI) jumped 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) gave up early session gains to fall below the flat line.
Stocks stabilized after a massive rally that also lifted the Nasdaq to an all-time high on Wednesday. Technology stocks helped drive gains, with Nvidia (NVDA) surpassing Apple (AAPL) as the second-largest US company with their market caps exceeding $3 trillion.
Artificial intelligence chip maker Nvidia gave back early session gains to fall below the flat line at 10 a.m. ET. Other big tech held steady, with Apple and Meta (META) trading slightly higher.
Meanwhile, Treasury yields rebounded from declines that fueled a rally in stocks. The benchmark 10-year yield (^TNX) rose to about 4.30%, moving away from the lowest level since March reached on Wednesday.
The market greeted the recent weak economic readings as a reason to bring the Federal Reserve’s policy pivot back to the table, with the US private sector employment report failing to have the latest sign of a slowing labor market. Traders now see a 69% chance of a rate cut in September, versus about 50% a week ago, according to the European Central Bank report. CME FedWatch tool.
Across the pond, the European Central Bank cut interest rates by 25 basis points on Thursday for the first time since 2019, in a widely expected move.
Read more: How does the labor market affect inflation?
Weekly US unemployment claims released Thursday morning reached 229,000 versus the 220,000 that economists had expected. The data gives investors another clue as to whether the Fed will achieve the desired soft landing for the economy. But the countdown began for the monthly May jobs report on Friday, which is seen as pivotal for stocks.
In individual movers, Lululemon ( LULU ) shares rose 4% after the athletic apparel maker boosted earnings expectations and a stock buyback program.
He lives6 updates
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”