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Stock market today: Nvidia set to build on milestones as S&P 500, Nasdaq hold near records
US stocks took a breather on Thursday after a Big Tech-fueled winning session, with more labor data on deck to test investors’ growing hopes for interest rate cuts.
S&P 500 futures (ES=F) wavered along the flatline on the heels of a record close. Contracts on the Dow Jones Industrial Average (YM=F) and the tech-heavy Nasdaq 100 (NQ=F) were also little changed.
Stocks are regrouping after the roaring rally that also lifted the Nasdaq Composite (^IXIC) to an all-time high on Wednesday. Tech stocks helped drive the gains, with Nvidia (NVDA) overtaking Apple (AAPL) as the second biggest US company as both topped $3 trillion in market value.
AI chipmaker Nvidia’s shares continued to rise in pre-market trading, up around 2%. But other megacap techs faltered, with Apple, Meta (META), and Microsoft (MSFT) all losing ground slightly.
Meanwhile, Treasury yields revived from declines that bolstered the stock rally. The benchmark 10-year yield (^TNX) edged up to almost 4.30%, coming off its lowest level since March hit Wednesday.
The market has greeted recent soft economic readings as a reason to put a Federal Reserve policy pivot back on the table, with the ADP private payrolls miss just the latest sign of a labor market cooldown. Traders now see a 69% chance of a September rate cut, versus around 50% a week ago, according to the CME FedWatch tool.
Meanwhile across the pond, the European Central Bank cut interest rates by 25 basis points on Thursday for the first time since 2019 in a widely anticipated move.
Read more: How does the labor market affect inflation?
US Jobless claims last week came in at 229,000, more than the 220,000 forecast by economists. The data comes as investors gauge whether the Fed will nail its wished-for soft landing for the economy. But the countdown is on for the May monthly jobs report on Friday, seen as pivotal for stocks.
In individual movers, Lululemon (LULU) shares popped 9% in pre-market trading after the athleisure wear maker boosted its profit outlook and stock buyback program.
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