Tech stocks lead the market’s charge on Thursday, fueled by interest-rate speculations and anticipation for the upcoming US jobs report.
On Thursday, investors witnessed a notable rebound as the Dow Jones Industrial Average (^DJI) climbed approximately 0.4%, breaking its three-day losing streak. The S&P 500 (^GSPC) surged by 0.7%, while contracts on the Nasdaq Composite (^IXIC), heavily weighted towards technology, soared by about 0.8%. Both indices built on slight closing gains from the previous session, signaling renewed optimism in the market.
This surge comes as investors refocus their attention on potential clues regarding interest-rate movements, particularly in anticipation of the forthcoming US jobs report. Federal Reserve Chair Jerome Powell’s recent reassurances that the central bank remains committed to its rate-cutting strategy have helped alleviate concerns among investors.
The debate over the trajectory of interest rates intensified following indications of economic acceleration, raising the possibility of future rate hikes, commonly referred to as a “no landing” scenario. Powell’s consistent messaging, however, suggesting that rate cuts are still on the table for this year while emphasizing a cautious approach due to the uncertain path of inflation, appears to have quelled uncertainties, at least for the time being.
Attention now turns to the March jobs report scheduled for release on Friday morning, a pivotal economic indicator influencing the Fed’s policy decisions. Experts anticipate a continuation of the robust labor market trend, with little indication of weakening. Department of Labor data released on Thursday revealed a slight uptick in initial jobless claims, reaching 221,000 last week, the highest level since January.
In the corporate sphere, Levi Strauss (LEVI) shares surged by an impressive 18% after the denim giant raised its full-year earnings projections. Additionally, BlackBerry’s (BB) US-listed stock experienced a notable boost as the Canadian company’s cybersecurity division contributed to an unexpected quarterly profit.
Meanwhile, Ford (F) saw its shares rise by nearly 2% following the automaker’s announcement of “retiming” the launch of its upcoming electric SUV to 2027. This strategic move aims to capitalize on the maturation of the EV market while expanding Ford’s hybrid electric vehicle offerings. The company aims to offer hybrid options across its entire lineup by the end of the decade, signaling a concerted effort to embrace the evolving automotive landscape.
The day’s trading session witnessed a notable resurgence as tech stocks lead the market higher, reflecting investors’ optimism amidst ongoing interest-rate speculations and anticipation for the forthcoming US jobs report.
