US open: Tech stocks lift markets as data barrage misses forecasts
US stocks pushed tentatively higher on Thursday morning after a raft of economic data missed expectations, with an ongoing rally from Nvidia continuing to propel the S&P 500 and Nasdaq to new records.
Shortly after the opening bell, the Dow was up 0.1%, the S&P 500 gained 0.3% while the Nasdaq rose 0.4%, with traders returning to their desks following the Juneteenth public holiday in a positive mood.
Nvidia gained more than 3% to hit a new record high $140.76, equating to a market cap of $3.46trn. The chip group this week become the largest publicly listed company in the world after overtaking Microsoft.
In economic data, initial jobless claims fell to 238,000 in the week to 14 June, from a revised 243,000 the week before, and slightly above the 235,000 consensus forecast. However, the four-week moving average increased by 5,500 to 232,750.
Ryan Sweet, chief US economist at Oxford Economics, said the downside risks to the labour market should be on the Fed's radar, if they aren't already, with the job openings rate declining noticeably.
"The risk of labor demand being too weak to prevent the unemployment rate from rising could give some support in cutting interest rates as an imbalance in the labor market is unlikely to be a significant factor in future inflation. The central bank can’t wait until cracks in the labor market form, or they’ll be behind the curve," Sweet said.
Meanwhile, building permits dropped by 3.8% to 1.386m in May, missing the 1.450m estimate, housing starts unexpectedly slumped 5.5% to 1.277m, well below the 1.370m expected, while the regional Philly Fed manufacturing index declined to 1.3 from 4.5, significantly below the 5.0 forecast.
In equity news, Trump Media & Technology sank more than 12% after the registration of additional shares became effective, diluting the stock's value.
Tech stocks were in demand, including Advanced Micro Devices after positive comments from investment bank Piper Sandler, and Accenture after reporting strong results in new generative AI orders.