Wall Street Sliding: S&P 500, Nasdaq Outperform Employment Data – Forecast – June 7, 2024

The S&P 500 and Nasdaq composite closed slightly lower on Thursday ahead of a key jobs report, retreating from record highs the previous day. However, the Dow rose slightly.

The S&P 500 and Nasdaq started on the rise and hit intraday highs, but declined as technology stocks fell.

Utilities and industrials also contributed to the decline in the S&P 500, while consumer discretionary and energy led the gains.

Nvidia shares fell 1.1%, falling to third among the world’s most valuable companies, behind Apple, which regained second place.

Investors are keeping an eye on Friday’s major U.S. nonfarm payrolls report. The latest weekly jobless claims report points to a weakening labor market that could cause the Federal Reserve to start cutting interest rates. The European Central Bank (ECB) cut interest rates for the first time since 2019.

The Dow Jones Industrial Average rose 78.84 points, or 0.20%, to 38,886.17. The S&P 500 index closed down 1.07 points, or 0.02%, at 5,352.96, and the Nasdaq Composite closed down 14.78 points, or 0.09%, at 17,173.12.

Among Dow Jones components, Salesforce Inc. was the biggest gainer, up 6.23 points, or 2.63%, to close at 242.76. Amazon.com Inc. closed up 3.72 points, or 2.05%, at 185.00.

Nike closed at 95.72, up 1.40 points (1.48%).

Intel Corporation fell the most, down 0.36 points, or 1.17%, to 30.42. 3M Company shares closed up 0.84 points, or 0.85%, at 98.22, while Goldman Sachs Group Inc shares closed down 3.58 points, or 0.78%, at 458.10.

Among the top gainers in the S&P 500 was Illumina Inc stock, which rose 7.42% to close at 114.72. PayPal Holdings Inc shares rose 5.49% to close at 67.02, while MarketAxess Holdings Inc shares rose 4.86% to close at 205.97.

NRG Energy Inc shares were the biggest decliners, down 4.56% to 77.83. Hubbell Inc shares closed down 4.11% at 365.94. Eaton Corporation PLC fell 4.02% to 313.46.

The biggest gainer on the Nasdaq Composite Index was Virax Biolabs Group Ltd, up 85.85% to 1.97. SilverSun Technologies Inc rose 68.61% to close at 220.00 and Fibrobiologics Inc rose 53.88% to 10.31.

Cue Health Inc was the worst performer, down 79.95% to 0.01. Plutonian Acquisition Corp fell 58.10% to 2.43. Actelis Networks Inc fell 47.04% to 1.97.

The rise of AI-related stocks, including Nvidia, was a key factor supporting Wall Street’s rally this year. Chipmakers have contributed significantly to the S&P 500’s more than 12% gain this year.

Traders see a 68% chance of a September rate cut, according to CME’s FedWatch tool, and are pricing in two rate cuts this year, according to LSEG data. Forecasters surveyed by Reuters also expect two rate cuts.

“We are in a period of uncertainty between now and tomorrow,” said Thomas Hayes, chairman of Great Hill Capital in New York. “But overall, we are seeing the beginning of a global, coordinated easing of policies by Western central banks, with the exception of Japan, which is tightening policies.”

GameStop shares soared 47% after a popular online influencer known as “Roaring Kitty” announced she would be live streaming on YouTube on Friday.

Lululemon Athletica shares rose 4.8% after the company beat first-quarter earnings and sales estimates.

U.S.-listed shares of Chinese electric vehicle maker NIO (9866.HK) fell 6.8% after the company reported a quarterly net loss.

Five Below shares fell 10.6% after the discount store operator lowered its full-year net sales outlook.

On the NYSE, advancing stocks outnumbered declining stocks by a 1.05 to 1 ratio. On Nasdaq, 1,729 stocks closed higher and 2,445 stocks closed lower, resulting in a ratio of 1.41 to 1 in favor of decliners.

The S&P 500 recorded 25 52-week highs and 5 lows, while the Nasdaq Composite recorded 57 new highs and 110 new lows. Total stock trading volume on U.S. exchanges was about 10.4 billion, lower than the 20-day average of 12.7 billion.

August gold futures rose 0.69%, or 16.50, to $2.00 an ounce. WTI crude oil futures for July delivery rose 2.01%, or 1.49%, to $75.56 per barrel. Brent crude oil futures for August delivery rose 1.87% (1.47%) to $79.88 per barrel.