- Microsoft cuts forecast due to exchange rate effects
- ADP May private sector jobs +128k vs est +300k
- S&P 500 +1.84%, Nasdaq +2.69%, Dow +1.33%
June 2 (Reuters) – Wall Street ended sharply higher on Thursday, led by Tesla, Nvidia and other megacap growth stocks in a choppy session ahead of a key jobs report due on Friday.
Tesla (TSLA.O), Nvidia (NVDA.O), and Meta Platforms (FB.O) were each up more than 4%, fueling gains in the S&P 500 and Nasdaq. Amazon (AMZN.O) added 3.1% and Apple (AAPL.O) added 1.7%.
Of the S&P 500’s 11 sector indices, 10 rose, led by Consumer Discretionary (.SPLRCD), up 3.03%, followed by Materials (.SPLRCM) up 2.69%.
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US stocks rebounded from a fall earlier in the day after Federal Reserve Vice Chair Lael Brainard said she supports at least a couple more half-a-point rate hikes and sees little reason to pause September’s rate hikes if the price pressure does not abate. Continue reading
The US stock market has recovered slightly in recent sessions, with investors debating whether the worst sell-off that has dominated Wall Street in 2022 may be over.
“Volatility has become the norm, not the exception. Equities are being held captive by inflation, and until inflation is controlled, volatility is likely to remain elevated,” warned Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis, Minnesota.
The S&P 500 is now down about 13% from its record high from early January.
The Philadelphia Semiconductor Index (.SOX) rose 3.6% to close at the highest level in nearly a month.
The number of US private employees rose far less than expected in May, suggesting that amid higher interest rates and tightening financial conditions, demand for labor was gradually slowing, ADP’s national jobs report showed. Continue reading
All eyes are now on the government’s jobs data on Friday, with investors looking for fresh signs of the health of the US economy and how aggressively the Fed could continue raising interest rates. Analysts expect the economy added 325,000 jobs last month.
A trader works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S. May 18, 2022. REUTERS/Andrew Kelly
Unofficially, the S&P 500 was up 1.84% to end the session at 4,176.82 points.
The Nasdaq gained 2.69% to 12,316.90 points, while the Dow Jones Industrial Average rose 1.33% to 33,248.28 points.
The S&P 500’s busiest trades
Microsoft (MSFT.O) rose 0.8% even after the software maker lowered its fourth-quarter earnings and revenue guidance, becoming the latest U.S. company to warn of a hit from a stronger U.S. dollar. Continue reading
Hewlett Packard Enterprise Co (HPE.N) slid 5.2% after the tech company issued disappointing full-year guidance on currency troubles and its exit from Russia.
Veeva Systems (VEEV.N) surged nearly 15% after the life sciences software maker’s quarterly revenue forecast beat expectations.
Ford Motor Co (FN) rose 2.5% after the automaker announced it would invest $3.7 billion in assembly plants in Michigan, Ohio and Missouri. Continue reading
In the US stock market (.AD.US), rising stocks outweighed falling ones by a ratio of 3.5:1.
The S&P 500 posted a new high and 29 new lows; The Nasdaq recorded 33 new highs and 107 new lows.
Volume on US exchanges was relatively light at 10.7 billion shares traded, compared to an average of 13.3 billion shares over the previous 20 sessions.
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Reporting by Anisha Sircar and Devik Jain in Bengaluru and by Noel Randewich in Oakland, California; Editing by Marguerita Choy
Our standards: The Thomson Reuters Trust Principles.
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