Ines Ferré
Live
Stock market today: S&P 500, Nasdaq wobble as rate-cut conviction runs high
In this article:
US stocks wavered on Thursday as investors weighed how deeply the Federal Reserve might lower interest rates in September on the eve of a key speech by Chair Jerome Powell.
The S&P 500 (^GSPC) fell 0.3% while the tech-heavy Nasdaq Composite (^IXIC) erased early morning gains to dip 0.4%. The Dow Jones Industrial Average (^DJI) fell 0.4% after the three indexes closed in the green on Wednesday.
Stocks took a positive tone after minutes from the Fed's last meeting showed several officials were open to a July rate cut, signaling a pivot is likely in next month's policy decision. Mounting hopes for lower rates have already helped markets recoup losses from an early August rout.
The Fed's Jackson Hole symposium kicks off Thursday with the market on high alert for any shift in tone from the policymakers when Powell speaks at the event on Friday.
Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut
Initial jobless claims jumped to 232,000 last week, matching expectations, while the prior week's reading was revised up to 228,000. The data released on Thursday morning was in higher focus given an official revision to payrolls showed the labor market — a key input for policymakers — may have been cooling long before initially thought. Signs of stress could factor into how deeply the Fed cuts rates, with hopes for a 0.5% reduction in play.
On the corporate front, Paramount (PARA) shares rose after media executive Edgar Bronfman Jr. sweetened his takeover bid to $6 billion. Meanwhile, Snowflake (SNOW) stock sank as its sales outlook disappointed investors' hopes for an AI boost.
Live4 updates
Existing home sales rise in July, home prices jump for 13th straight month as mortgage rates moderate
Yahoo Finance's Dani Romero reports:
Sales of existing homes rose in July as house hunters returned to the market with mortgage rates at their lowest levels since February.
Existing home sales advanced 1.3% from June to a seasonally adjusted annual rate of 3.95 million, the National Association of Realtors said Thursday, stopping a four-month sales decline that began in March. Economists polled by Bloomberg expected existing sales to hit a pace of 3.94 million in July.
On a yearly basis, sales of previously owned homes dropped 2.5% in July. The median home price climbed 4.2% in July to $422,600, the 13th straight month of annual price increases.
Read more here.
Meta shares climb 1% to intraday record high
Meta (META) shares climbed more than 1% on Thursday to touch an intraday record. The stock outperformed the rest of the Magnificent 7 stocks during the session.
Shares of the social media platform are up more than 50% year-to-date.
Stocks wobble, erase early morning gains
Stocks erased their early morning gains around 10:15 a.m. ET on Thursday.
The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (IXIC) hovered near the flat line after each gaining more than 0.4%.
The Dow Jones Industrial Average (^DJI) dipped into negative territory.
Stocks erased early session gains after the latest economic data released on Thursday showed US Manufacturing PMI fell to 48 in August from 49.6 in July, coming in softer than expected.
Stocks edge higher as Fed's Jackson Hole kicks off
Stocks rose slightly on Thursday, with the S&P 500 inching closer to record levels as investors look for clues from the Fed's Jackson Hole symposium on the depth of the likely interest rate cut expected next month.
The S&P 500 (^GSPC) rose 0.3% while the tech-heavy Nasdaq Composite (IXIC) rose 0.5%. The Dow Jones Industrial Average (^DJI) was up 0.2% after the three indexes closed in the green on Wednesday.
In early trading, the S&P 500 was less than 1% away from touching its all-time intraday high set in July.
The Fed's Jackson Hole symposium kicks off Thursday, and investors are on high alert for any shift in tone from the policymakers when Powell speaks at the event on Friday.
Minutes from the Fed's last meeting showed several officials were open to a July rate cut, solidifying the probability of a pivot in September.
Hopes for lower rates have already helped markets recoup all of their losses during a stunning rebound from an early August rout.
Nvidia (NVDA) has been one of the biggest winners of that bounce. On Thursday the stock gained more than 1% following a bullish note from Citi analysts. Wall Street firms have recently reiterated their Buy ratings ahead of the AI chip giant's quarterly results next week.
Nvidia shares have gained roughly 30% since their August lows.