Risk appetite returned to Wall Street on Thursday, as signs of labor market cooling in August cemented expectations that the Federal Reserve will begin cutting interest rates at its Sept. 17 meeting.
The ADP National Employment Report showed just 54,000 jobs were added in August, a steep decline from 106,000 in July and well below the 65,000 median forecast.
With job creation slowing, economists now expect Friday's official nonfarm payrolls report to show just 75,000 new jobs--nearly flat from July's already-soft 73,000 and far from the pace typically needed to sustain economic growth.
Rate-cut odds surged in response. Markets are now pricing in a nearly 100% chance the Fed will deliver a 25-basis-point cut this month, according to CME FedWatch Tool data. Odds for a second cut before year-end climbed to 90%. Treasury yields also eased, with the 30-year yield falling to 4.87%.
The S&P 500 rose 0.4% to 6,470, inching closer to its record high of 6,508 set last week. The Dow Jones Industrial Average added 0.5% to 45,480, while the Nasdaq 100 gained 0.5%.
The rally was driven by cyclical and growth-sensitive sectors, particularly consumer discretionary stocks. Shares of Amazon Inc. (NASDAQ:AMZN) jumped 3.5% after the company announced that JetBlue Airways Corp. (NYSE:JBLU) will adopt its Project Kuiper low Earth orbit satellite system to provide free in-flight Wi-Fi.
In the industrial sector, GE Aerospace (NYSE:GE) also made headlines, advancing 2% to fresh record highs. The company announced a $300 million investment and strategic partnership with Beta Technologies, a maker of electric aircraft and propulsion systems.
As equity sentiment improved, safe-haven assets lost steam. Gold slipped 0.2% to $3,550, on track to snap a seven-day winning streak.
Meanwhile, Bitcoin (CRYPTO: BTC) dropped more than 2% to trade below $110,000.
Thursday’s Performance In Major US Indices, ETFs
| Major Indices | Price | %Chg |
| • Dow Jones | 45,483.71 | +0.5% |
| • Nasdaq 100 | 23,522.33 | +0.5% |
| • S&P 500 | 6,474.00 | +0.4% |
| • Russell 2000 | 2,358.65 | +0.4% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.4% to $594.25.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.5% to $455.66.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) gained 0.4% to $572.55.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 0.5% to $234.73.
- The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up 1.3%; the Utilities Select Sector SPDR Fund (NYSE:XLU) lagged, down 0.4%.
S&P 500’s Top 5 Gainers
| Name | Chg % |
|---|---|
| T. Rowe Price Group Inc. (NASDAQ:TROW) | +5.96% |
| Western Digital Corp. (NYSE:WDC) | +4.38% |
| Williams-Sonoma Inc. (NYSE:WSM) | +4.32% |
| Amazon.com Inc. | +3.67% |
| Builders FirstSource Inc. (NYSE:BLDR) | +3.53% |
S&P 500’s Top 5 Losers
| Name | Chg % |
|---|---|
| The AES Corporation (NYSE:AES) | -6.61% |
| Centene Corporation (NYSE:CNC) | -5.64% |
| Salesforce Inc. (NYSE:CRM) | -5.40% |
| NiSource Inc. (NYSE:NI) | -5.35% |
| Molina Healthcare Inc. (NYSE:MOH) | -4.22% |
Now Read:
- Weak Jobs Cement Fed Rate Cuts–And Wall Street Eyes Records Again
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