04.09.202520:01:53UTC+00S&P 500 Hits Fresh Record Ahead of Jobs Report

U.S. stocks experienced an upswing on Thursday as investors evaluated new labor market data and increased their expectations for a possible interest rate cut by the Federal Reserve later this month. The S&P 500 climbed 0.8% to reach a new record high, the Nasdaq increased by 0.9%, and the Dow rose by 350 points. Reports indicated that private payrolls expanded by only 54,000 in August, falling short of predictions, while jobless claims climbed to their highest level since June—indicating a cooling labor market. Nonetheless, traders interpreted this slowdown as reinforcing the likelihood of a rate cut in September, with Fed funds futures suggesting a more than 95% probability of a reduction. Meanwhile, a stronger-than-anticipated ISM services PMI report highlighted resilience in the broader economy. Corporate earnings significantly influenced market dynamics: Amazon surged 4.3% amid optimism regarding its AI ventures, Meta increased by 1.6%, Broadcom rose by 1.2% in anticipation of its earnings report, and Salesforce declined by 5.1% following weak guidance. As the week concludes, attention turns to Friday’s jobs report, considered a crucial indicator ahead of the Federal Reserve’s policy meeting on September 17.