STORY: U.S. stocks gained on Thursday, with the Dow adding more than three-quarters of a percent, the S&P 500 climbing over eight-tenths of a percent to notch a record high close, and the Nasdaq rising about one percent.
Data showed the number of Americans filing new applications for unemployment benefits increased more than expected last week, while hiring by private employers slowed in August, further evidence that labor market conditions were softening.
Investors are now laser focused on the U.S. monthly jobs report, due Friday, and whether it will keep Federal Reserve Chair Jerome Powell and his fellow policy makers on track for an expected 25 basis point interest rate cut this month – or cause that number to potentially double.
Robert Conzo is CEO and managing director of The Wealth Alliance.
“I believe a 25 basis points (U.S. Federal Reserve interest rate cut) is very well warranted. He (U.S. Federal Reserve Chairman Jerome Powell) should do it. The 50 (basis points)? I don't think it's really 100% necessary right now. I think we have to see how this labor report and what continues to go on, if corporate profits still continue, well, then maybe that 25 basis points really isn't necessary. I think a little bit more data is necessary for a 50.”
Stocks on the move Thursday included Amazon, which rose more than 4%. JetBlue said it will partner with Amazon subsidiary Project Kuiper, a satellite broadband internet network, to improve its onboard Wi-Fi.
Shares of Broadcom, which gained more than 1% at the close, rose higher in extended trading after the company forecast fourth-quarter revenue above Wall Street estimates, bolstered by strong demand for its custom AI chips.
And shares of Lululemon nosedived about 14% in extended trading after the sportswear maker slashed its annual revenue and profit forecasts, signaling a slowdown in demand going into the crucial holiday season.
