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    • Dow collapses, Nasdaq sees fluctuations due to weaker labor market data
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    Dow collapses, Nasdaq sees fluctuations due to weaker labor market data

    Bronwen Cerys Posted on

    U.S. stocks faltered on Thursday as investors digested further weaker-than-expected labor market data that could boost hopes for interest rate cuts and the health of the U.S. economy.

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

    Private employers in the U.S. posted the smallest monthly hiring gain since January 2021, new data from ADP showed Thursday. Private sector payrolls grew by about 99,000, well below expectations. Meanwhile, slightly fewer Americans filed new unemployment claims last week. On Wednesday, government data showed a collapse in job openings.

    Together, the labor market data serve as a preview of Friday’s August jobs report, which is key to the Fed’s monetary policy decisions and is being closely watched amid hopes for a “Goldilocks” economy.

    The market is torn between conflicting impulses as data releases paint a gloomy picture of the economy. The latest weak numbers suggest even deeper rate cuts. But they could also be a sign that the US is on the brink of recession and a “soft landing” is no longer an option.

    Traders believe there is a nearly 50-50 chance that the Federal Reserve will cut interest rates by 0.5 percent at its September meeting.

    Read more: Fed forecasts for 2024: What experts say about the possibility of a rate cut

    At the corporate level, earnings from HPE (HPE) and C3.ai (AI) shed some light on growth prospects in the AI ​​space. C3.ai shares slumped 11% after the enterprise AI software maker reported weak subscription revenue. HPE stock also slipped on profitability disappointment.

    Meanwhile, Tesla (TSLA) pared earlier gains to rise 3% as the company said it would stick to its plans to roll out its fully autonomous driving software in China and Europe, subject to regulatory approval.

    Live5 updates

    • Mortgage rates remain stable while Fed threatens to cut rates

      The average interest rate on 30-year fixed-rate mortgages remained unchanged this week as investors continued to expect the Federal Reserve to cut interest rates later this month.

      The interest rate remained unchanged from the previous week at 6.35%, Freddie Mac reported on Thursday. A year ago, the average interest rate for a 30-year fixed-rate loan was 7.12%.

      The average interest rate on a 15-year fixed-rate mortgage was 5.47 percent, compared to 5.51 percent the previous week. The interest rate on a 15-year loan was 6.52 percent a year ago.

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

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

      “Although interest rates fell over the summer, home sales have been sluggish. When it comes to refinancing, however, homeowners who bought in recent years are taking advantage of falling mortgage rates to lower their monthly payments,” the economist said.

    • Dow loses more than 350 points, Nasdaq gives back gains from the beginning of the session

      The Dow (^DJI) lost more than 350 points on Thursday, leading the downward trend in overall markets.

      The S&P 500 (^GSPC) fell 0.4%6, while the tech-heavy Nasdaq Composite (^IXIC) gave up gains from earlier in the session and fell 0.2%.

      Major averages fluctuated during the session as investors digested weaker-than-expected personal payrolls data ahead of Friday’s monthly employment report.

      Thursday’s losses were driven primarily by industrial, healthcare and financial stocks, while consumer discretionary stocks posted modest gains.

    • Oil price rises 2% as OPEC+ delays plans to increase production next month

      Oil futures rose more than 2% on Thursday after the OPEC+ alliance delayed the reversal of some of its voluntary production cuts and will therefore not add any more barrels to the market.

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

      The decision, as Bloomberg reported, comes after oil prices gave up all their annual gains so far on concerns about a slowing Chinese economy and market expectations for more supply. The oil alliance’s two-month delay means OPEC+ members will not increase production by another 180,000 barrels a day this year.

    • Nasdaq and S&P 500 rise as Tesla shares surge

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

      Electric car maker Tesla (TSLA) rose more than 6% after saying it plans to roll out fully autonomous vehicles in Europe and China next year. Meanwhile, e-commerce giant Amazon (AMZN) gained 2%. Shares of AI chip giant Nvidia (NVDA) also gained more than 2%.

    • S&P 500 and Nasdaq fluctuate amid weaker labor market data

      US stocks were little changed at the start of trading on Thursday after further weak labour market data trickled in ahead of Friday’s big employment report, which could influence the US Federal Reserve’s expected rate cut size at its September meeting.

      The S&P 500 (^GSPC) remained flat, while the Dow Jones Industrial Average (^DJI) edged lower. The tech-heavy Nasdaq Composite (^IXIC) erased earlier losses and rose 0.6%.

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

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

      At the corporate level, shares of C3.ai (AI) tumbled nearly 20% after the enterprise software maker reported weaker-than-expected subscription revenue, leaving shares of the once-successful company down for the year.

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

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    Bronwen Cerys
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