The S&P 500 concluded Thursday with a marginal decline, stepping back from its recent peak, as investors anticipated a crucial U.S. economic update.
Closing at 5,352.96, the broad market index dipped 0.02% after achieving an intraday record earlier in the session. Similarly, the Nasdaq Composite retreated by 0.09% to 17,173.12, while the Dow Jones Industrial Average managed a modest gain of 78.84 points, or 0.20%, closing at 38,886.17.
Lululemon surged 4.8% following its fiscal first-quarter results, surpassing market expectations, whereas Five Below tumbled 10.6% due to disappointing performance and guidance. Chip giant Nvidia experienced a 1.2% decline, easing from its recent highs.
Investor focus now turns to Friday’s release of the May nonfarm payrolls report, with analysts seeking clues about the labor market’s strength, which could influence Federal Reserve decisions on interest rates. Economists surveyed by Dow Jones anticipate a job gain of 190,000.
Ross Mayfield, investment strategy analyst at Baird, commented, “The market is still signaling a healthy economy without any recessionary indicators. However, there’s a possibility that the Federal Reserve’s monetary policy might have been excessively tight for an extended period, and a slowdown in job creation momentum could prove challenging to reverse once initiated.”
The report follows the European Central Bank’s decision to cut rates for the first time since 2019, intensifying pressure on the Federal Reserve to consider adjustments to its perceived restrictive policy. The Fed is scheduled to announce its rate decision next week, with expectations leaning towards maintaining current rates, though speculation of a September rate cut is gaining traction.
Thursday’s session followed a positive trajectory, with the S&P 500 closing at a record high, marking a 1.2% increase, while the Nasdaq also achieved an all-time peak.
Nvidia played a significant role in propelling these gains, reaching a market valuation exceeding $3 trillion and surpassing Apple in value. Earlier in the week, Nvidia unveiled its latest generation of artificial intelligence chips, dubbed “Rubin.”
