Wall Street Climbs Amid Hopes of Fed Rate Cut

Wall Street's main indexes saw an uptick on Thursday following labor market data that reinforced expectations for a Federal Reserve interest rate cut. Despite an increase in private payrolls falling short of forecasts, rising jobless claims suggest easing labor market conditions.

Salesforce's stock suffered a 5.5% drop after predicting third-quarter revenue beneath Wall Street estimates, highlighting challenges in AI platform monetization. While such AI-linked companies have driven records this year, recent momentum has stalled due to valuation concerns. In contrast, Amazon and Meta Platforms both posted gains, lifting certain sectors.

Attention now turns to Friday's release of nonfarm payrolls data, which could further steer market sentiment. Investors also closely monitored Stephen Miran's Senate confirmation hearing for a potential Federal Reserve board seat. As September unfolds with historical market challenges, Wall Street awaits guidance from upcoming economic reports and Fed insights.

(With inputs from agencies.)