June 7, 2024 -Today’s stock market saw a temporary pause in its recent rally, as investors held their breath ahead of a crucial jobs report. US stocks showed minimal movement on Thursday, lingering near their all-time highs, as market participants eagerly awaited updates on the labor market amid mounting expectations for interest rate reductions.
The S&P 500 index hovered just below the neutral line following a record-setting close. The Dow Jones Industrial Average edged up by a modest 0.2%, while the Nasdaq Composite, known for its concentration of technology stocks, relinquished its early gains to slip approximately 0.1%.
This momentary pause came after a robust rally that propelled the Nasdaq to its highest level ever on Wednesday. Technology shares played a significant role in driving these gains, with Nvidia surpassing Apple to become the second-largest company in the United States by market capitalization.
However, on Thursday, Nvidia experienced a slight retreat, with its shares declining by over 1%, causing the market capitalization of the AI chip giant to dip below the $3 trillion mark.
Recent softer economic indicators have prompted investors to reconsider the Federal Reserve’s stance on monetary policy, with the ADP private payrolls report, in particular, signaling a potential slowdown in the labor market. Traders are now pricing in a 69% probability of a rate cut in September, compared to around 50% just a week ago, according to data from the CME FedWatch tool.
