S&P Leaps, Investors Look for Rate Cuts

The S&P 500 rose Wednesday as Nvidia hit a record to lead major tech stocks higher. Weak labour market data also gave investors hope the Federal Reserve might move to lower interest rates later this year.

The Dow Jones Industrials regained 52.32 points to hit noon EDT at 38,763.61.

The much-broader index grabbed 39.85 points to 5,331.19.

The NASDAQ popped 234.35 points, or 1.4%, to 17,091.23.

As for Nvidia, its shares galloped $34.28, or 2.9%, to $1,198.65.

Along with Nvidia, other tech shares were leading Wednesday’s gains. Hewlett Packard Enterprise climbed more than 13% after fiscal second-quarter revenue topped Wall Street estimates. CrowdStrike jumped 7% on stronger-than-expected earnings and guidance.

Fellow technology and AI play’s Meta Platforms gathered 2%, and Alphabet climbed 1%.

Private payroll data from ADP showed hiring slowed to 152,000 jobs last month, far below the 175,000 economists polled by Dow Jones expected. The data is the latest sign of weakness in the labor market that investors hope will give the Federal Reserve enough evidence to cut benchmark interest rates.

Traders also regarded data on activity in the services sector. Business services PMI rose more than expected to 53.8 compared to an estimate from Dow Jones that called for 50.7. Attention will turn to weekly jobless claims numbers on Thursday and Friday’s all-important May jobs report.

Job opening and labour turnover data from Tuesday morning showed 8.059 million vacancies in April, the lowest level in more than three years.

Prices for the 10-year Treasury slid, raising yields to 4.29% from Tuesday’s 4.33%. Treasury prices and yields move in opposite directions.

Oil prices recovered 20 cents to $73.45 U.S. a barrel.

Gold prices gained $26.90 to $2,374.30