- Nasdaq rises 0.4% led by gains in major tech and chip stocks.
- Tesla soars 6% after announcing full self-driving software launch in Europe and China.
- Market awaits August nonfarm payrolls report amid mixed labor market signals.
The Nasdaq Composite experienced a rebound of 0.4% on Thursday, following a series of declines. This uptick was driven by significant gains in major technology and chip stocks. Nvidia, Amazon, and other tech giants saw notable increases, with Nvidia leading the charge with a 3% rise.
Tesla made headlines with a 6% surge after unveiling plans to introduce its full self-driving software in Europe and China next year. This announcement provided a boost to the tech-heavy Nasdaq, which had been struggling with recent volatility.
Market Volatility and Tech Stocks Drive Nasdaq’s Recovery
The ISM services sector index showed a slight improvement in August, indicating modest expansion. However, sub-indices related to employment and order backlogs displayed declines, signaling potential challenges in the broader economic landscape.
Despite the positive movement in tech stocks, labor market data remains a concern. Private payroll growth was the weakest since 2021, and while weekly unemployment claims fell, the overall labor market picture is mixed. The market’s focus is now on Friday’s August nonfarm payrolls report.
The volatility in the stock market, particularly in the tech sector, has heightened fears of potential pullbacks. Wolfe Research suggests that the risks are skewed to the downside, especially as the market grapples with economic uncertainties and increased volatility.
The ISM services sector index revealed a modest expansion in August, with a slight increase to 51.5%. However, declines in employment and order backlogs point to underlying weaknesses in the sector. This mixed data underscores the ongoing economic challenges and market sensitivity.
The Nasdaq’s rebound highlights the resilience of tech stocks amidst broader market volatility. However, with mixed economic signals and an upcoming key labor report, investors remain cautious about future market movements.
“While incoming data is mixed, it is not collapsing, and the global cutting cycle should help the economy achieve a soft landing, extending the cycle into 2025.” — Emmanuel Cau
