US Stocks Remain Steady Amid Cooling Labor Market

Mixed Performance in US Stock Market as Tech Giants Face Declines

Key Points:

  • US stocks traded steadily, the Dow Jones rose by 0.11%, the S&P 500 declined by 0.08%, and the NASDAQ Composite saw a marginal decline of 0.02%.
  • Unemployment claims rose to 229,000, exceeding expectations and suggesting a cooling labor market.
  • Nvidia surpassed Apple in market cap and is nearing Microsoft’s valuation, driven by strong AI prospects.
  • Crude oil prices edged higher but are on track for weekly losses, influenced by OPEC’s output plans and increased U.S. crude stocks.

U.S. stocks traded with little movement on Thursday following data suggesting a cooling labor market, while tech giant Nvidia continued its upward momentum. At 01:35 PM (ET), the Dow Jones Industrial Average rose by 0.11%, the S&P 500 declined by 0.08%, and the NASDAQ Composite saw a marginal decline of 0.02%.

Data released earlier indicated that the number of Americans filing for first-time unemployment benefits rose more than expected last week, climbing to 229,000 from the previous week’s revised total of 221,000. Economists had anticipated a figure of 220,000. The U.S. labor market has recently shown signs of cooling. On Wednesday, data revealed that private payrolls grew slower than expected in May, following a weak job openings report earlier in the week.

The highly anticipated monthly payroll report is due on Friday. Economists predict that the U.S. economy added 185,000 jobs, a slight increase from the previous month. These developments have led traders to increase their bets that the Federal Reserve will cut interest rates by 25 basis points in September, fueling optimism in the market.

The main indices posted gains on Wednesday, driven largely by Nvidia (NASDAQ: NVDA), which boosted the S&P 500 and the NASDAQ Composite to record highs. Nvidia’s stock saw a decline of 22.21 or 1.81% to 1,202.18 on Thursday, building on Wednesday’s surge to a record high. The company crossed the $3 trillion valuation mark, overtaking Apple (NASDAQ: AAPL) as the second-largest company on Wall Street, amid growing excitement over its involvement in artificial intelligence (AI). Nvidia’s gains on Wednesday significantly contributed to the S&P 500 and the NASDAQ Composite closing at record levels.

Crude oil prices edged higher on Thursday, supported by positive sentiment, but remain on track for significant weekly losses. By 01:40 PM (ET), U.S. crude futures (WTI) traded 2.12% higher at $75.64 per barrel, and the Brent contract climbed 1.89% to $79.89 a barrel. Both contracts are poised for weekly declines of around 4%, affected by the Organization of the Petroleum Exporting Countries and its allies’ decision to unwind voluntary output cuts starting in October gradually.

Additionally, the crude oil market was impacted by U.S. Energy Information Administration data showing U.S. crude stocks increased by 1.2 million barrels in the week ending May 31, against expectations for a 2.3 million barrel draw.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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