Last Updated: 4:05 PM EST
Stock indices finished today’s trading session mixed. The Nasdaq 100 (NDX) and the S&P 500 (SPX) gained 0.54% and 0.36%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) fell 0.28%.
The U.S. job market saw a moderate increase in new unemployment benefit applications last week, with 219,000 claims filed. The increase in claims was driven by rises in New York and California, with applications in New York soaring by 4,092 and filings rising by 3,999 in California. This rise is consistent with the labor market’s gradual easing, although job opportunities are becoming harder to find due to slow hiring. Despite this, economists remain optimistic.
Indeed, the labor market’s resilience has been driving the U.S.’ economic expansion, which has given the Federal Reserve room to pause interest rate cuts. However, the job market is showing signs of slowing down, as the government reported 1.1 job openings for every unemployed person in December, down from 1.15 in November. This decline in job openings suggests that the labor market is becoming increasingly competitive.
Furthermore, the slow hiring pace is expected to continue, with U.S. employers announcing plans to hire 6,089 workers in January – a 24% decrease from December. While the labor market is easing, productivity growth has slowed, which is driving up labor costs. Unit labor costs surged by 3% in the October-December quarter, and that could weigh on job growth in 2025 if firms reduce expenses to maintain profits. Still, the unemployment rate is forecast to remain unchanged at 4.1%.
First Published: 3:54 AM EST
U.S. futures traded higher on Thursday morning, following two consecutive days of gains for major stock indices. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.27%, 0.22%, and 0.24%, respectively, at 3:26 a.m. EST, February 6.
The Dow Jones surged 0.71% on Wednesday, which reflects its best performance in nearly two weeks. The S&P 500 and the Nasdaq Composite (NDAQ) also climbed higher by 0.39% and 0.19%, respectively. Nvidia (NVDA) led the rally, with its shares surging 5.2% as artificial intelligence stocks recovered from recent losses.
Importantly, investor concerns over potential trade tariffs eased as both the U.S. and its trading partners adopted a more cautious approach. Moreover, strong economic data and positive earnings reports aided the positive market sentiment.
In major after-market action, semiconductor firms Qualcomm (QCOM) and Arm Holdings (ARM) declined 4.6% and 6.3%, respectively, despite reporting upbeat quarterly results. Also, Ford Motor (F) dropped 4.5% after the company said it expects a loss between $5 billion and $5.5 billion from its EV unit in 2025.
Looking ahead, investors are awaiting the release of Initial Jobless Claims data for the week ending February 1 for insights into the health of the labor market. Also, the U.S. productivity report for the fourth quarter of 2024 will be made public today.
On the corporate front, earnings reports from one of the Magnificent Seven companies, Amazon (AMZN), will take center stage today. Also, Eli Lilly (LLY), Roblox (RBLX), Philip Morris (PM), Pinterest (PINS), Cloudflare (NET), ConocoPhillips (COP), and Peloton Interactive (PTON) will release their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.436% as of writing. Simultaneously, WTI crude oil futures are trending higher, hovering near $71.20 per barrel as of the last check.
Elsewhere, European indices opened higher on Thursday as global stocks recovered from recent sell-offs caused by the rise of China’s AI startup DeepSeek and U.S. President Donald Trump’s tariffs. Also, investors await the Bank of England’s monetary policy decision.
Asia-Pacific Markets Ended Higher on Thursday
Asia-Pacific indices were in the green today after concerns over a global trade war eased, with the U.S. and China adopting more moderate tariff measures.
Notably, the Hang Seng Index closed higher by 1.3%. Further, China’s Shanghai Composite and Shenzhen Component indices gained 1.27% and 2.26%, respectively. Also, Japan’s Topix and Nikkei indices climbed 0.25% and 0.61%, respectively.
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