Wall Street edged higher as investors awaited the upcoming payrolls report for further confirmation on the path for rate cuts. European stocks also gained. Australia snapped a four-day losing streak, taking its lead from the US. Asian benchmarks were mixed.
Wall Street’s three main benchmarks moved higher as job market data did not alter expectations for a rate cut this month. The DOW gained +0.8%, the S&P 500 added +0.7%, and the NASDAQ rose +0.7%. Broadcom gained +1.2% ahead of its quarterly results due after the bell. Amazon and Meta also supported the market, rising +3.0% and +1.0% respectively. Data showed that new unemployment benefit applications rose more than expected, while private-sector hiring slowed. The closely watched monthly payrolls report is due on Friday. Salesforce fell -5.2% after forecasting 3Q revenue below analyst estimates. Among other gainers, American Eagle Outfitters surged +37.8% after the apparel company forecast third-quarter comparable sales well above estimates, driven by successful celebrity collaborations with Taylor Swift’s fiancé, NFL star Travis Kelce, and actress Sydney Sweeney. The US two-year yield fell -2bp to 3.59%, while the 10-year yield dropped -4bp to 4.17%.
The pan-European STOXX 600 gained +0.6% as investors remained cautious ahead of key US jobs data. The FTSE 100 rose +0.4%. EasyJet fell -4.2%, while Jet2 dropped -12.0% after saying it expected EBIT at the lower end of its forecast range. Porsche eased -1.0% and was relegated to the German mid-cap index. Sanofi sank -8.0% after its dermatitis drug failed to meet expectations in phase three trials.
Australia’s ASX 200 snapped a four-day losing streak, rising +1.0%. Iress jumped +7.0% after appointing a new CEO. Austal gained +4.3% after the shipbuilder announced the US Coast Guard had agreed to a US$314m project to procure materials for three additional vessels. New Zealand’s NZX 50 added +0.5%. Japan’s Nikkei 225 rose +1.5%, while Korea’s Kospi gained +0.5%. China’s Shanghai Composite fell -1.3% and the CSI 300 dropped -2.1%. Hong Kong’s Hang Seng shed -1.1%.
WTI crude fell -1.0% to US$63.33/bbl, gold lost -0.3% to US$3,549.33/oz, and iron ore rose +0.7% to US$103.24/t.