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The Nasdaq Composite rose on Thursday, breaking a two-day losing streak as investors picked up technology stocks that had been under pressure. The tech-heavy index gained 0.6%, while the S&P 500 saw a modest increase of 0.1%. However, the Dow Jones Industrial Average dropped 120 points, or 0.3%.
Investors turned to tech stocks despite ongoing concerns about the economy. Shares of companies like Nvidia and Advanced Micro Devices were still lower, reflecting some caution in the market.
Mixed signals from fresh labor data on Thursday added to the uncertainty. Private payrolls showed the weakest growth since 2021, raising concerns about a slowing labor market. However, weekly unemployment claims declined, offering some relief. All eyes are now on the August nonfarm payrolls report due on Friday, which could give a clearer picture of the economy’s health.
Earlier in the week, the market reacted sharply to weak manufacturing data, sparking fears of a potential slowdown. Emmanuel Cau, head of European equity strategy at Barclays, noted that while economic data is mixed, there is hope for a soft landing as global rate cuts may help the economy extend growth into 2025.
In individual stock news, Tesla’s shares surged 4% after the company announced plans to launch its full self-driving software in Europe and China next year. Meanwhile, Frontier Communications dropped 8% following news that Verizon will acquire the company in a $20 billion deal. Verizon’s stock edged up 0.3%.
This recovery in the Nasdaq and S&P 500 comes ahead of the closely watched jobs report, which will likely influence market sentiment in the days to come.