Dow slumps, Nasdaq whipsaws amid more soft labor market data

By Investor Empires On Sep 5, 2024

U.S. stocks fell on Thursday as investors digested more weaker-than-expected labor market data that could help set the outlook for both interest rate cut hopes and the health of the U.S. economy.

The S&P 500 (^GSPC) fell about 0.6%, while the Dow Jones Industrial Average (^DJI) fell more than 350 points, or about 0.9%. The technology-heavy Nasdaq Composite (^IXIC) fluctuated between positive and negative territory. The indexes ended Wednesday’s volatile session mixed as they continued their slow start to September.

New data from ADP on Thursday showed that U.S. private employers posted their smallest monthly job growth since January 2021. Private-sector payrolls increased by about 99,000 jobs, well below expectations. At the same time, slightly fewer Americans filed new claims for unemployment benefits last week. Government data on Wednesday showed job openings fell.

The labor market data together serve as a prelude to Friday’s key August jobs report, which is crucial to the Fed’s policymaking process and is closely watched amid hopes for a “moderate” economy.

Markets have been divided on conflicting motives as data paints a gloomy picture of the economy. Recent weak readings suggest deeper interest rate cuts are needed. But they may also be a sign that the US is on the cusp of recession and a “soft landing” is no longer on the cards.

Traders see a roughly 50-50 chance that the Fed will cut interest rates by 0.5% at its September meeting.

Read more: Fed Forecast 2024: What Experts Say About Possible Rate Cuts

On the corporate front, earnings from HPE (HPE) and C3.ai (AI) shed some light on the growth prospects for AI. Shares of C3.ai fell 11% after the enterprise AI software maker reported weak subscription revenue. HPE shares fell amid disappointment over its profitability.

Meanwhile, Tesla (TSLA) pared earlier gains to rise 3%. The company plans to stick to plans to launch its fully self-driving software in China and Europe pending regulatory approval.

He lives5 updates

Thursday, September 5, 2024 at 12:39 PM EST

Mortgage Rates Hold Steady as Fed Rate Cuts Near

The average interest rate on a 30-year fixed mortgage was unchanged this week as investors continue to expect the Federal Reserve to cut interest rates later this month.

The rate stabilized from last week at 6.35%. Freddie Mac Report On Thursday. A year ago, the average interest rate on a 30-year fixed loan was 7.12%.

Separately, the average interest rate on a 15-year fixed mortgage was 5.47%, down from 5.51% the week before. The interest rate on a 15-year loan was 6.52% a year ago.

“Mortgage rates remained steady this week as markets awaited the highly anticipated August jobs report,” Sam Khater, chief economist at Freddie Mac, said in a press release.

Overall, mortgage rates have been on a downward trend since May.

“Despite the decline in interest rates over the summer, home sales have been weak. But on the refinancing front, homeowners who bought in recent years are taking advantage of lower mortgage rates to lower their monthly payments,” the economist said.
Thursday, September 5, 2024 at 11:59 AM EST

Dow Jones drops more than 350 points, Nasdaq erases early session gains

The Dow Jones (^DJI) fell more than 350 points on Thursday, dragging the overall markets lower.

The S&P 500 (^GSPC) fell 0.4%6 while the tech-heavy Nasdaq Composite (^IXIC) erased early gains in the session to fall 0.2%.

Major averages saw sharp swings during the session as investors digested weaker-than-expected private sector payrolls data ahead of Friday’s monthly jobs report.

Industrials, healthcare and financial services sectors led declines on Thursday while consumer discretionary stocks held on to modest gains.
Thursday, September 5, 2024 at 10:56 AM EST

Oil jumps 2% after OPEC+ delays plans to raise output next month

Oil futures jumped more than 2% on Thursday after the OPEC+ alliance Delayed regression From some voluntary production cuts, which means they will not pump more barrels into the market.

West Texas Intermediate (CL=F) crude rose above $70 a barrel on Thursday, while Brent crude (BZ=F), the international benchmark, rose to $74 a barrel.

The decision, as reported by Bloomberg, comes after oil prices lost all their gains since the start of the year amid concerns about a slowdown in the Chinese economy and market expectations of increased supply. The two-month delay of the oil alliance means OPEC+ members will not increase production by an additional 180,000 barrels per day in September.
Thursday, September 5, 2024 at 10:21 AM EST

Nasdaq, S&P 500 rise as Tesla shares surge

The S&P 500 (^GSPC) rose 0.3%, while the technology-heavy Nasdaq Composite (^IXIC) rose 1%, with consumer discretionary stocks leading the gains.

Shares of electric carmaker Tesla (TSLA) rose more than 6% after news that it will continue to roll out full self-driving capabilities in Europe and China next year. Meanwhile, shares of e-commerce giant Amazon (AMZN) rose 2%. Shares of artificial intelligence chip giant Nvidia (NVDA) also rose more than 2%.
Thursday, September 5, 2024 at 9:31 AM EST

S&P 500, Nasdaq fall amid more weak labor market data

U.S. stocks were little changed at the open on Thursday after more weak labor data ahead of Friday’s big jobs report, which could influence the Federal Reserve’s decision on the size of an expected interest rate cut at its September meeting.

The S&P 500 (^GSPC) was flat, while the Dow Jones Industrial Average (^DJI) was down slightly. The tech-heavy Nasdaq Composite (^IXIC) pared earlier losses to rise 0.6%.

New ADP data released before the market opened showed that U.S. private sector employers posted the smallest monthly increase in employment since January 2021. Private sector payrolls increased by about 99,000 jobs, well below expectations.

In addition to the monthly jobs report, the employment data could influence the Federal Reserve on the size of the interest rate cut it is likely to announce after its two-day meeting this month.

On the institutional front, shares of C3.ai (AI) fell about 20% after the enterprise software maker reported weaker-than-expected subscription revenue. Shares of the once-highly volatile stock have turned negative for the year.

Meanwhile, HPE (HPE) stock fell on disappointment over the profitability of its AI servers.

Dow slumps, Nasdaq whipsaws amid more soft labor market data

Mortgage Rates Hold Steady as Fed Rate Cuts Near

Dow Jones drops more than 350 points, Nasdaq erases early session gains

Oil jumps 2% after OPEC+ delays plans to raise output next month

Nasdaq, S&P 500 rise as Tesla shares surge

S&P 500, Nasdaq fall amid more weak labor market data