S&P 500 Dips Below 5,500 as Job Market Cools, Tech Stocks Show Mixed Performance

S&P 500 Falls Below 5,500 Points On Cooling Jobs Data, Tesla Leads Tech Gains, Natural Gas Spikes: What's Driving Markets Thursday? - American Airlines Gr (NASDAQ:AAL)

ADP reports private sector job growth of 99,000 in August, missing expectations of 140,000, the slowest pace since January 2021. Signs of a cooling labor market last month pushed major U.S. stock averages lower on Thursday, ahead of the highly anticipated August jobs report set for release on Friday. Private sector job creation came in at 99,000 for August, according to ADP data, marking the slowest pace of growth since January 2021 and missing the forecast of 140,000. A stronger-than-expected services sector activity sentiment for August offered some relief to broader recession concerns, but an employment subindex bolstered hints of the ongoing cooling in the labor market. The S&P 500 dropped below the 4,500 support level for the first time since mid-August, extending weekly losses to 2.9%, and is on track for its worst week since mid-April. Tech stocks managed to pare losses, with semiconductor shares holding steady. Blue-chip stocks underperformed, as the Dow Jones slid 0.8%, while small-cap stocks fell 0.6%. A decision from OPEC+ to delay an October oil production increase by two months supported crude prices and further pressured already fragile investor sentiment. West Texas Intermediate (WTI) crude stopped its decline after suffering its worst two-day slump since October 2023. Treasury yields dipped slightly, and the U.S. dollar softened. Meanwhile, gold edged higher by 0.6%. Natural gas was Thursday's standout performer, with Henry Hub prices surging over 5%. The U.S. Energy Information Administration reported a natural gas storage injection of 13 billion cubic feet (Bcf) for the week ending Aug. 30, significantly below historical averages and expectations. Sentiment in crypto assets worsened, with Bitcoin BTC/USD tumbling 3% to $56,170. Thursday's Performance In Major US Indices, ETFs According to Benzinga Pro data: The SPDR S&P 500 ETF Trust SPY was 0.5% lower to $548.40. The SPDR Dow Jones Industrial Average DIA fell 0.8% to $407.30. The tech-heavy Invesco QQQ Trust Series QQQ edged 0.1% lower to $459.90. The iShares Russell 2000 ETF IWM fell 0.6% to $211.35. The Consumer Discretionary Select Sector SPDR Fund XLY outperformed, up by 0.8%, while the Health Care Select Sector SPDR Fund XLV lagged, down 1.5%. Thursday's Stock Movers Tesla Inc. TSLA rallied 4% after announcing it plans to roll out its Full Self-Driving (FSD) technology in China and Europe during the first quarter of 2025, pending regulatory approvals. The EV maker will also produce a six-seat Model Y variant in China, starting next year. Verizon Communications Inc. VZ announced Thursday it has reached an agreement to acquire Frontier Communications Parent Inc. FYBR in an all-cash deal valued at approximately $20 billion. Shares of Verizon eased 0.6%, while those of Frontier Communication Parent plummeted 9% after rallying 37% on Wednesday. United Steel Corp. X rose 4% after tumbling 17% Wednesday. According to Reuters, the Committee on Foreign Investment in the U.S. (CFIUS) has raised concerns about potential national security risks related to Nippon Steel's planned $14.9 billion acquisition of U.S. Steel. NIO Inc. - ADR NIO rallied 11% in reaction to upbeat quarterly results and improved guidance. Other stocks reacting to earnings results included The Toro Company TTC down over 10%, Copart Inc. CPRT down 6.7%, Hewlett Packard Enterprise Co. HPE down 5.3%, Core & Main, Inc. CNM down 0.7%, Credo Technology Group Holding Ltd CRDO and C3.ai, Inc. AI, both down around 13%. Companies reporting results after the close include Broadcom Inc. AVGO, Samsara Inc. IOT, DocuSign Inc. DOCU, Ui Path Inc. PATH and Smartsheet Inc. SMAR. Read Now: Could August Jobs Numbers Keep Recession Fears At Bay? 'This Time Is Different,' Analyst Says Don't miss the opportunity to dominate in a volatile market at the Benzinga SmallCAP Conference on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you're a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today! Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

Nasdaq wavers, S&P falls as tech comeback eases, data underscore weakness in jobs market

U.S. stock averages were mixed in Thursday's topsy-turvy session, during which Nvidia (NVDA) and other technology stocks came off daily highs and data punctuated softness in the labor market heading into the pivotal August jobs report. The tech-heavy Nasdaq Composite (COMP:IND) +0.1% in afternoon trade, after rising as much as 1.2% then slipping into negative territory. The benchmark S&P 500 (SP500) was -0.5%. The Dow (DJI) measure of blue-chips -0.9%, with only Merck (MRK) and three other components higher. The Nasdaq's (COMP:IND) stronger advance earlier had countered broader market weakness stemming from fresh data that largely paints a picture of a weakening U.S. jobs market. Challenger, Gray & Christmas said layoffs in August nearly tripled in the U.S. to 75,891 from July. Excluding August 2020, the number was the highest total for that month since 2009. The ADP national employment report then said U.S. private nonfarm payrolls increased 99K in August, significantly lower than the consensus of +140K. The Labor Department said the number of Americans filing for initial jobless claims in the last week fell to 227K, but that was lower than the 230K estimate. The ADP report showed smaller companies are feeling the pressure to cut labor costs more than larger companies, Jeffrey Roach, chief economist at LPL Financial, said in a note ahead of Friday's U.S. August jobs report. "Tomorrow's payroll report could be softer than expected given the slowdown in ADP estimates," Roach said. "If the payroll report surprises investors and comes in weaker than expected, the likelihood of a 50 basis point cut increases at the upcoming Fed meeting." In the fixed-income market, the 10-year Treasury yield (US10Y) slipped 1 basis point to 3.75%, and the 2-year yield (US2Y) was down 2 basis points to 3.76%. Back in equities, mega-cap tech stocks were off session peaks. Nvidia (NVDA) was +0.9% after gaining more than 3%. Microsoft (MSFT) turned lower, -0.2%. Tesla (TSLA) was +3.8%, paring back an advance of nearly 6%. The electric vehicle maker said it plans to launch its Full Self-Driving (FSD) technology in China and Europe in the first quarter of 2025, pending regulatory approval. Nvidia (NVDA) was still on course to halt a two-day slide that saw the chip giant lose about $323B in market value. "The market is struggling with challenges of a semiconductor selloff and broader growth slowdown (related, but not 100% the same) against a backdrop of September seasonal weakness," Morgan Stanley's institutional equity division said in a Thursday note. On Thursday, of the S&P 500's (SP500) 11 sectors, eight were in the red. Health Care and Industrials lost the most, and Consumer Discretionary was the lead advancer. There was more economic data Thursday, this time from the U.S. services sector. Both S&P Global and the Institute for Supply Management said economic activity in the sector improved in August. In the markets, Nio (NIO) +11% after the Chinese EV maker narrowed its Q2 net loss on higher revenue. HP Enterprise -5.8% even as it server maker raised its full-year guidance on the back of AI demand. More on the markets Recession Evidence Mounts With Key August Jobs Report On Deck The 'Real' Gold Price Is At Long-Term Resistance Market And Economic Insights From August 2024 Another Hot Month, Another Fresh Record US Mutual Funds year-ends in September causes equities to underperform - analyst