Tech Stocks Lead Market Bounce as Powell Soothes Rate Cut Nerves

Tech Stocks Lead Market Bounce as Powell Soothes Rate Cut Nerves

April Jobs Report in Focus

Tech stocks led the markets higher on Thursday as investors shifted their focus to the upcoming US jobs report, searching for clues about future interest rate changes. The Dow Jones Industrial Average (^DJI) recovered from three consecutive losing days, rising approximately 0.4%. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC), both made slight gains on Thursday, with the tech-heavy Nasdaq popping about 0.8%.

Market Recovery Following Powell’s Remarks

Chair Jerome Powell’s remarks soothed concerns that the Federal Reserve would hesitate to make rate cuts. With recent signs of acceleration in the economy raising the odds of further rate hikes, Powell’s assertion that the Fed will cut rates this year to combat inflation’s bumpy path downward seems to have calmed investors.

March Jobs Report Anticipation

All eyes are now on the March jobs report, set to be released on Friday morning, as it provides key inputs for the Fed’s data-dependent policy decision-making process. Experts don’t expect any cracks in the strong US labor market story, despite the Department of Labor data released on Thursday indicating a slight increase in initial jobless claims.

Corporate Achievements

Amid market uncertainty, some notable corporate achievements stood out. Levi Strauss (LEVI) reported an 18% increase in shares after boosting its full-year earnings forecasts. Meanwhile, BlackBerry (BB) surprised investors with a quarterly profit, attributed to the success of its cybersecurity unit.

Latest Market Updates

Ford Delays All-Electric SUV Launch and Expands Hybrid Offerings

Ford (F) shares jumped almost 2% after the automaker announced a “retiming” of its upcoming electric SUV launch to 2027, allowing the EV market to mature. Furthermore, Ford plans to offer hybrid vehicles across its entire lineup by the end of the decade.

Meta Hits New High, Leading the Nasdaq

Shares of Meta (META) reached a new high of $523.85, contributing to the Nasdaq Composite’s strong performance. Meta is one of the top performers in the stock market this year, showing a 47% increase year-to-date.

Tech Stocks Lead Market Higher

Stocks opened higher on Thursday, with tech stocks leading the gains after a difficult start to the second quarter. The Dow Jones Industrial Average rose about 0.7%, while the S&P 500 and the Nasdaq Composite gained 0.7% and 0.9% respectively. The S&P 500 Technology Sector ETF (XLK) rose approximately 1%.

Citi Optimistic about General Motors

General Motors (GM) remains relatively unnoticed in the stock market this year, but shares are up 25%. The automaker’s performance is attributed to better execution on the EV transition and the desire to return cash to shareholders. Analysts at Citi anticipate another resilient quarter for GM and consider it as one of their top stock picks.