U.S. stocks were little changed on Thursday after a crisis fueled by Big Tech. winning sessionwith investors weighing new jobs data amid rising hopes for interest rate cuts.
The S&P 500 (^GSPC) rose 0.1% after a record close. The Dow Jones Industrial Average (^DJI) rose 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.1%.
Stocks were steady after the strong rally that also took the Nasdaq to a record high on Wednesday. Technology stocks helped drive gains, with Nvidia (NVDA) overtaking Apple (AAPL) As the second largest company in the US since both exceeded 3 billion dollars in market value.
Artificial intelligence chip maker Nvidia rose slightly on Thursday. But other mega-cap technology companies held back, such as Apple and Meta (GOAL) floating just below the flat line.
Meanwhile, Treasury yields recovered from declines that fueled the rally in stocks. The 10-year benchmark performance (^TNX) rose to around 4.30%, breaking from its lowest level since March, which arrived on Wednesday.
The market has welcomed the recent weak economic readings as a reason to put a Federal Reserve policy shift back on the table, with the ADP private payrolls are missing just the latest sign of a cooling job market. Traders now see a 69% chance of a rate cut in September, up from around 50% a week ago, according to the CME FedWatch Tool.
On the other side of 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?
U.S. weekly jobless claims released Thursday morning totaled 229,000, compared to the 220,000 expected by economists. The data gives investors another clue about whether the Federal Reserve will achieve the desired soft landing for the economy. But the countdown is on for the May Monthly Jobs Report on Friday, considered critical for stocks.
In individual moving companies, Lululemon (lulu) shares rose 4% after the sportswear maker boosted its earnings outlook and share buyback program.
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