Investing.com — U.S. stocks gained Wednesday, shrugging off concerns about the economy following softer labor market data amid ongoing bets that the Federal Reserve is set to cut interest rates next month.
At 13:05 ET (17:05 GMT), the rose 20 points, or 0.1%, the index rose 0.3%, and the rose 0.3%.
Payrolls revised sharply lower; Fed minutes in focus
Investors gained in confidence Wednesday after data showed that the U.S. economy added significantly fewer jobs than first reported during the past year.
The Bureau of Labor Statistics revised down March 2024’s employment gains by 818,000 positions earlier in the session, as part of the agency’s annual benchmark review of payroll data.
Markets are trading in a cautious manner as investors look for clues over the Federal Reserve’s intention at its next policy-meeting in September.
The report from the Bureau of Labor Statistics over potential revisions to the recent nonfarm payrolls data is due later in th session, and most economists expect a downwards revision.
Goldman Sachs (NYSE:) forecast that 600,000 to 1 million fewer jobs were created from April 2023 to March 2024 than previously reported, although the influential investment bank stated that the likely downward revision “will exaggerate the degree to which payroll growth has been overstated.”
from the Fed’s July policy meeting are also due later in the day, ahead of Chair Jerome Powell’s speech at the economic symposium at on Friday.
While investors expect Powell to provide more dovish cues, especially amid recent signs of some cooling in inflation, he is not expected to explicitly outline plans for an interest rate cut in September.
The Fed is still widely expected to cut rates next month, and while a cut of 25 basis points is still favored, this data can only increase the likelihood of a large 50 bps reduction as the U.S> central bank moves to avoid a recession in the world’s largest economy.
Target , Keysight technologies shine, but Macy’s, La-Z-Boy slump on earnings stage
Target Corporation (NYSE:) stock rose 13% after the big box retailer raised its annual profit forecast and beat expectations for second-quarter comparable sales, with customers drawn in by low priced groceries and essentials.
Macy’s (NYSE:) stock, by contrast, fell 12% after the department store chain missed market expectations for quarterly revenue as lingering weakness in U.S. consumer spending hurt demand for big-ticket, non-essential goods.
Keysight Technologies (NYSE:) stock surged 12% after its earnings beat estimates, while 3D Systems (NYSE:) fell 3% after reporting weaker-than-expected earnings.
Furniture maker La-Z-Boy Incorporated (NYSE:) stock dropped around 3% as a weaker-than-expected guidance largely offset strong earnings.
JD.com falls on Walmart plans to sell take; Ford scales back EV plan
Chinese e-commerce firm JD.com (NASDAQ:) stock slid over 5% after Bloomberg reported that Walmart (NYSE:) planned to sell its stake in the firm for about $3.7 billion.
Ford Motor Company (NYSE:) gained more than 1% after scrapping its planned three-row electric SUV and delaying the roll out of a new F-150 as the automaker deals with softer demand.
(Peter Nurse, Ambar Warrick contributed to this article.)
