US Stocks Lack Direction
The three major US stock averages hovered around the flatline on Thursday, as investors weighed mixed economic data and reports of a phone call between US President Trump and Chinese President Xi, though no details of the conversation were disclosed.
On the data front, initial jobless claims unexpectedly rose to 247K, the highest level since October last year, signaling potential softening in the labor market.
Additionally, labor costs rose more than initially estimated, adding to inflationary concerns. Traders are now looking ahead to Friday’s key jobs report for further insight into the strength of the labor market. Consumer staples was by far the worst performing sector while consumer services outperformed.
Megacap stocks were mixed: Nvidia (0.1%), Microsoft (0.3%), Amazon (1.4%), and Alphabet (+1%) posted gains, while Apple and Meta hovered near the flatline. Tesla fell around 5%, pressured by weaker sales in Europe and Elon Musk’s public criticism of President Trump’s tax bill.
Source: Trading Economics