S&P 500 Closes Lower Amid Economic Concerns

Investing.com — The S&P 500 closed lower Thursday, with bullish bets on stocks sidelined by fresh economic worries following mixed employment data just a day ahead of the August nonfarm payrolls report.

At 4:00 p.m. ET (2000 GMT), the 30-stock Dow Jones Industrial Average had slipped by 219 points or 0.50%, while the benchmark S&P 500 fell 0.3%, and the tech-heavy Nasdaq Composite also fell 0.3%.

Private Payrolls Miss Expectations as Focus Shifts to Friday’s Payrolls Data

US private payrolls increased by less than anticipated in August, raising concerns about the health of the economy.

Private payrolls increased by 99,000 jobs in August, compared to a downwardly revised total of 111,000 in July, according to payrolls processor ADP. This marked the weakest month for the figure since January 2021.

Economists had predicted a reading of 144,000, an increase from the original July mark of 122,000.

The number of Americans filing for first-time unemployment benefits totaled 227,000 for the week ending on August 31, a decrease of 5,000 from the prior week’s revised level of 232,000. Forecasts had anticipated the number to align with last week’s initial mark of 231,000.

This data, which precedes Friday’s nonfarm payrolls report, has amplified expectations for larger Fed rate cuts.

Stifel noted in a Thursday report that, “as a result of disappointing data, investors are now anticipating a more aggressive monetary policy response, including a potential 50bps cut in September, currently priced in at 45%, with a total of 111bps in policy easing expected by year-end.”

Verizon Agrees to $20B Deal to Acquire Frontier; US Steel Rebounds

Verizon (NYSE:VZ) ended the day marginally lower after agreeing to purchase Frontier Communications (NASDAQ:FYBR) in a deal valued at $20B. The acquisition aims to enhance the telecom giant’s fiber network to better compete against rivals like AT&T (NYSE:T).

US Steel (NYSE:X) increased by over 2%, recovering some losses from a significant slump on Wednesday. The U.S. steel maker faced challenges following reports that President Joe Biden plans to block its proposed $14.9 billion takeover by Japan’s Nippon Steel, citing national security concerns.

Hewlett Packard Enterprises Slumps on Margin Worries; JetBlue Soars After Lifting Guidance; Tesla Readies Technology Rollout in Europe and China

Hewlett Packard Enterprise Co (NYSE:HPE) Bell fell by 6% as its earnings beat and Q4 raise were overshadowed by concerns over diminishing margins due to a shift in the server mix.

JetBlue Airways Corp (NASDAQ:JBLU) surged by over 6% after raising its Q3 guidance, forecasting revenues to be between negative 2.5% and up 1% compared to the year-ago period, an improvement from its previous estimate of a decline between 5.5% and 1.5%.

Tesla Inc (NASDAQ:TSLA) rose more than 4% following the announcement of its plans to launch advanced driver assistance features in Europe and China in Q1 2025.

(Scott Kanowsky, Peter Nurse contributed to this report.)