Wall Street Gains Slightly, Earnings Determine Sentiment
Wall Street moved positively but cautiously on Thursday (February 12th), a day after a solid US jobs report left the market in a state of turmoil: on the one hand, the economy appears resilient, but on the other, the likelihood of an interest rate cut has become increasingly uncertain.
At the opening of the session, the Dow Jones Industrial Average rose 186 points, or 0.3%. The S&P 500 and Nasdaq Composite also rose 0.3% each, indicating a limited rally, not euphoria.
Market sentiment was tempered by mixed data: weekly jobless claims came in at 227,000, slightly above expectations, but still reflecting a relatively solid labor market. This prompted investors to opt for safe havens while awaiting the next catalyst.
From the corporate side, market direction was also influenced by the performance reports of major issuers. Cisco weighed down the market, with its shares under pressure (around -7% to -8% in pre-market) after investors deemed its forward guidance/expectations insufficient by current technology sector standards.
Meanwhile, the focus remains on the US CPI (Friday): if core inflation remains stubborn, the market could further reduce expectations of a "swift rate cut," and that typically makes stocks volatile even when employment data is good. So the picture now: indexes rising slightly, earnings acting as a filter, and CPI as the next "mood-setter."
Source: Newsmaker.id
