U.S. Stock Markets Rally as Investors Bet on Fed Rate Cut
U.S. stock markets saw notable gains as labor market data reinforced expectations of a Federal Reserve interest rate cut. Broadcom, Amazon, and Meta Platforms shares rose, while Salesforce shares fell. Investors await the U.S. monthly jobs report, with a 95% probability of a rate cut expected.
U.S. stock markets climbed on Thursday, buoyed by labor market data that did little to deter investors from their belief in a forthcoming interest rate cut by the Federal Reserve. Notably, shares in chip giant Broadcom, an influential player in artificial intelligence, rose 1.2% ahead of their quarterly earnings report.
Further bolstering the market, shares of Amazon.com saw an increase of over 3%, and Meta Platforms rose by more than 1%. Recent data revealed a rise in unemployment benefit claims, along with slowed hiring by private employers in August, reinforcing signs of a softening labor market. Market players are eager for Friday's U.S. monthly jobs report.
"The labor market data we're expecting tomorrow isn't likely to change much," commented Mike Dickson of Horizon Investments. As the Dow, S&P 500, and Nasdaq registered significant gains, Salesforce's forecast of lower-than-expected revenue limited some day gains. Overall, advancing stocks outnumbered decliners on both the NYSE and Nasdaq.
(With inputs from agencies.)
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