Key Points
- The stock market is awaiting the June jobs report for clues on the economy and potential future interest rate cuts.
- Chip software stocks Synopsys and Cadence Design surged after the U.S. lifted some export restrictions to China.
- Datadog’s stock surged more than 10% after the company was added to the S&P 500 index.
- TripAdvisor shares rose after an activist investor bought a large stake in the company.
U.S. stock futures were mostly flat on Thursday as investors held their breath ahead of the monthly jobs report, which will provide a critical assessment of the economy’s health. The S&P 500 and Nasdaq closed at record highs in the previous session, and markets are now looking for clues about the Federal Reserve’s next move on interest rates.
All eyes are on the June nonfarm payrolls report, which is being released a day early due to the July 4th holiday. Trading is expected to be light, with the market closing early. Economists expect the data to indicate that the job market is cooling. A weaker-than-expected report could increase pressure on the Fed to cut interest rates at its next meeting, a move that traders are increasingly betting on.
While the broader market was quiet, several individual stocks made big moves. Shares of chip design software firms Synopsys and Cadence Design Systems surged 6-7% in premarket trading. The jump came after the U.S. government lifted some export restrictions on its software to China, signaling a potential thaw in trade tensions.
Cloud security company Datadog was another huge winner, jumping over 10% after it was announced that the firm would be added to the S&P 500 index. This move forces index funds to buy the stock, driving up its price. Elsewhere, Tripadvisor climbed nearly 5% after a report revealed that activist investor Starboard Value has taken a large stake in the online travel company.
