Wall Street rallies, lifted by Tesla and Nvidia
Wall Street rallied on Thursday, led by Tesla, Nvidia and other megacap growth stocks in a choppy session ahead of a key jobs report on Friday.
Tesla, Nvidia and Meta Platform each jumped more than 5%, lifting the S&P 500 and Nasdaq.
Nine of the 11 S&P 500 sector indexes rose, led by consumer discretionary, up 2.88%, followed by communications services up 2.49%.
The Philadelphia Semiconductor Index jumped 3%.
Federal Reserve Vice Chairman Lyle Brainard said she supports raising interest rates by at least half a percent, and US stocks tumbled after seeing little case for stopping price hikes in September.
The US stock market has corrected modestly in recent weeks, with investors debating whether the worst selloff that dominated Wall Street could end in 2022.
“Volatility has become the norm, not the exception,” said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis, Minnesota. Stocks are being held hostage by inflation, and until inflation is brought under control, volatility remains the same. More likely to stay.”
The S&P 500 is now down about 13% from its record high in early January.
The ADP National Employment Report showed US private payrolls grew much less than expected in May, suggesting that demand for labor was beginning to slow amid higher interest rates and tighter financial conditions.
All eyes are now on government non-farm payrolls data on Friday, with investors looking for new signs of the health of the US economy and how aggressively the Fed may continue to raise interest rates. Analysts expect the economy to have added 325,000 jobs in the past month.
The S&P 500 was up 1.36% at 4,157.19 in afternoon trading.
The Nasdaq rose 2.38% to 12,280.47, while the Dow Jones Industrial Average rose 0.79% to 33,070.92.
Microsoft gained 0.1% even after the software maker cut its fourth-quarter forecast for profit and revenue, making it the latest US company to warn of a hit from a stronger US dollar.
Hewlett Packard Enterprise Co fell 6.5% after the technology firm delivered a disappointing full-year forecast due to currency headwinds and an exit from Russia.
Ford Motor Company rose 2.2% when the automaker said it plans to invest $3.7 billion in assembly plants in Michigan, Ohio and Missouri.
In the US stock market, the number of declining stocks increased by a 3.2-to-one ratio.
S&P 500 records new highs and 29 new lows; The Nasdaq recorded 28 new highs and 95 new lows. (Reporting by Anisha Sarkar and Devik Jain in Bengaluru, and Noel Randevich in Oakland, California; Editing by Marguerita Choy)