Stock market today: Dow slumps, Nasdaq whipsaws amid more soft labor market data

Published On Sep 5, 2024, 11:42 AM

US stocks hesitated on Thursday as investors mulled over more weak labor market data, setting the stage for possible interest rate cut expectations from the Federal Reserve. The S&P 500 fell 0.3% and the Dow Jones dropped over 200 points, while the Nasdaq Composite showed some volatility but ultimately finished up slightly. The ADP reported just 99,000 jobs added in August, the lowest since January 2021, indicating a cooling labor market ahead of the critical jobs report due Friday. With this uncertain labor data, the likelihood of a Federal Reserve rate cut appears to be around 50-50, leaving traders guessing how these developments will impact the market. Companies like C3.ai experienced steep declines following weak earnings, while Tesla recovered some losses on news of planned launches in international markets.

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Stock Forecasts

AIView AI chart on TradingView

Negative

With weak labor market data and mixed signals around rate cuts, the overall market sentiment may skew negative in the short-term. Companies like C3.ai have shown vulnerability, and the pressure from disappointing earnings may continue to weigh heavily on related tech stocks.

TSLAView TSLA chart on TradingView

Positive

Tesla has shown resilience despite a broader market downturn, supported by positive news regarding its international expansion plans. If this momentum continues with solid performance in upcoming quarters, Tesla may regain its bullish trend.

HPEView HPE chart on TradingView

Negative

HPE's disappointing earnings report suggests ongoing challenges in profitability, particularly in the competitive AI server market. This may further negatively impact investor sentiment around the stock in the near term.

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