US stocks slipped on Thursday after a Big Tech-fueled winning session, with investors weighing fresh labor data amid growing hopes for interest rate cuts. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all saw slight declines, with tech stocks leading the way.
The recent rally that lifted the Nasdaq to an all-time high on Wednesday was driven by tech stocks, with Nvidia surpassing Apple as the second biggest US company. However, on Thursday, Nvidia shares gave back some gains, causing the AI chip giant’s market cap to fall below $3 trillion. Meanwhile, Apple and Meta remained relatively unchanged.
Investors are closely watching economic indicators, such as the recent soft ADP private payrolls data, which missed expectations. The market is now pricing in a higher chance of a September rate cut by the Federal Reserve, as concerns about a labor market cooldown persist.
In Europe, the European Central Bank cut interest rates for the first time since 2019, in a move that was widely anticipated. This decision, along with signals from Saudi Arabia regarding oil output cuts, helped boost oil prices on Thursday.
Individual stock movements included Lululemon, which saw a 4% increase in shares after boosting its profit outlook and stock buyback program. Nvidia, on the other hand, reversed earlier gains and dipped into negative territory, impacting the overall market.
Overall, investors are awaiting the May monthly jobs report on Friday, which is expected to be pivotal for stock market movements. The commercial PC market is showing signs of rebounding, and new developments, such as Chipotle CEO Brian Niccol joining the Walmart board, are adding to the market’s dynamics.
As the market continues to react to economic data and corporate news, investors are advised to stay informed and cautious in their decision-making.
