Oil prices rebound sharply on smaller-than-feared OPEC+ output hike
Investing.com - The S&P 500 notched a fresh closing record high Thursday as weaker-than-expected U.S. private payrolls data stoked optimism for a Federal Reserve rate cut this month.
At 4:00 p.m. ET, the benchmark S&P 500 rose 0.8% to a record close of 6,501.44. The tech-heavy NASDAQ Composite closed 1% higher. The blue-chip Dow Jones Industrial Average, meanwhile, gained 0.8%, 350 points.
Soft ADP payrolls report flags weakness in labor market
A gauge of private-sector hiring increased by 54,000 jobs in August, less than economists’ forecasts of 73,000 and down from a slightly upwardly-revised mark of 106,000 in July. Weekly first-time claims for unemployment benefits also came in at 237,000, above projections and not far from the prior total.
"At 54k, this is the weakest monthly pace since June," Stifel said in a recent note.
Following the data, CME’s FedWatch Tool showed that a more than 97% chance of a 25-basis point reduction at the central bank’s September 16-17 gathering.
Much of the attention in markets now shifts to Friday, when all-important U.S. nonfarm payrolls figures for August are anticipated to be released. Economists expect the U.S. to have added 75,000 roles during the month, compared to 73,000 in July.
Salesforce drops on weak earnings
In individual stocks, shares in Salesforce (NYSE:CRM) fell by more than 4%, after the enterprise software giant’s quarterly results disappointed investor expectations.
The company also forecast third-quarter revenue below Wall Street estimates, fueling worries that its push to monetize its artificial intelligence agent platforms may be falling behind.
Tech firms, including cloud-based businesses like Salesforce, have faced mounting pressure to show returns on billions of dollars worth of AI investments in recent years. The company has moved to expand its agentic AI offerings, touting these automated services as a next big growth drivers.
Still, Salesforce announced a $20 billion increase to an ongoing share buyback program, helping limit steeper declines in its stock price.
Figma (NYSE:FIG) shares also slumped by over 18% after the design software group unveiled its first quarterly earnings report since its blockbuster market debut earlier this year.
The stock previously spiked after its initial public offering on July 31, giving the firm a value of roughly $50 billion and possibly paving the way for other high-profile tech flotations. But shares have since dropped back from these heights, spurred in part by several Wall Street analysts opening their coverage of Figma in August with "neutral" ratings, citing worries around the company’s lofty valuation and intense competition.
Serving customers like online travel giant Airbnb and streaming video titan Netflix, Figma offers collaborative design software that enterprises can use to help build out websites, apps or other digital products.
Second-quarter revenue rose by 41% to $249.6 million, compared to estimates of $248.8 million, according to LSEG data cited by Reuters. Adjusted earnings per share came in at $0.09, versus forecasts of $0.08. Full-year revenue is also tipped to be between $1.02 billion and $1.03 billion. Analysts had seen it at $1.01 billion.
Texas Instruments Incorporated (NASDAQ:TXN), meanwhile, fell more than 3% after CFO Rafael Lizardi stoked concerns about cooling demand, citing the impact of U.S. tariffs.
The parade of retail earnings continued, with American Eagle Outfitters (NYSE:AEO) in the spotlight after surging more than 30% following better-than-expected Q2 results.
(Ambar Warrick and Frank DeMatteo contributed reporting.)