US close: S&P 500 hits new high on Fed rate-cut hopes
By Benjamin Chiou
Date: Thursday 04 Sep 2025
(Sharecast News) - US stocks pushed higher on Thursday, rallying in afternoon trade to send the S&P 500 to a new high, after a raft of weak economic data raised hopes for an imminent rate cut by the Federal Reserve.
A much worse-than-expected jobs number from ADP, higher jobless claims and a surge in job cuts figures were all in focus ahead of Friday's all-important non-farm payrolls report - widely seen as a barometer for the Fed's next policy decision.
The Dow rose 0.8% and the Nasdaq gained 1.0%, while the S&P 500 climbed 0.8% to settle at a new closing high of 6,502.08.
"The yield on the two- and 10-year US Treasury note dropped to levels last seen in early May, as weak labour market data strengthened expectations for multiple Federal Reserve rate cuts this year," said analyst Axel Rudolph from IG.
"Markets fully priced in a 25bps cut at the Fed's upcoming meeting, with nearly half of traders anticipating three cuts in total for 2025. Still, Treasury yields stayed relatively elevated, steepening the curve as investors weighed persistent inflation risks and the possibility of Fed policy being swayed by political pressure."
Market participants were focused on a Senate Banking Committee hearing on Thursday, with Donald Trump's nominee Stephen Miran seemingly on track to win approval to take over as Fed governor, replacing Adriana Kugler who resigned last month.
Miran, who is already a key economic adviser for Trump, claimed that he would act "independently as the Federal Reserve always does", though said he would consider keeping his job at the White House even if appointed.
Trade policy also remained in focus after Trump asked the Supreme Court to fast-track a ruling on his appeal against a federal decision that deemed most of his tariffs unlawful. The administration has sought to preserve duties imposed under emergency powers, arguing they were critical to ongoing negotiations and national economic security.
Labour-market data falls short
Private sector employment rose just 54,000 in August, according to ADP, versus expectations for a 75,000 jump and July's revised 106,000 figure.
Jobless claims rose by 8,000 to a seasonally adjusted 238,000 in the week ended 30 August, the highest number since June and firmly above consensus forecasts of a smaller increase to 230,000.
Meanwhile, US-based employers announced 85,979 job cuts in August, up 39% month-on-month and 13% year-on-year for the highest level August level since the Covid-19 pandemic. So far in 2025, US firms have announced 892,362 job cuts, the highest year-to-date level since 2020.
In other economic data, two readings from the services sector came in mixed: the S&P Global services PMI fell to 54.5 in August from 55.7 in July after the flash reading of 55.4 was revised lower; while the ISM services PMI rose to 52.0 from 50.1.
Market movers
Retailers were making some big moves on Thursday: Gap surged 6% after revealing a move into the beauty space through its Old Navy brand; Shoe Carnival jumped 20% after raising the bottom end of its full-year profit guidance; while American Eagle soared 38% after smashing expectations with its second-quarter earnings.
Elsewhere, Texas Instruments dropped after admitting that demand had softened due to trade tariffs, while PayPal was out of favour after its CFO gave a cautious outlook for the second quarter.
Dow Jones - Risers
Walmart Inc. (WMT) $100.93 3.15%
Intel Corp. (INTC) $24.61 2.54%
Goldman Sachs Group Inc. (GS) $748.90 2.47%
International Business Machines Corporation (CDI) (IBM) $247.18 2.35%
Travelers Company Inc. (TRV) $279.53 2.22%
Nike Inc. (NKE) $75.35 1.43%
JP Morgan Chase & Co. (JPM) $303.82 1.37%
Home Depot Inc. (HD) $411.69 1.32%
Caterpillar Inc. (CAT) $420.22 1.00%
Verizon Communications Inc. (VZ) $44.18 0.87%
Dow Jones - Fallers
Salesforce.Com Inc. (CRM) $244.01 -3.50%
Boeing Co. (BA) $230.75 -2.79%
Chevron Corp. (CVX) $157.69 -2.56%
Dow Chemical Co. (DOW) $23.89 -2.05%
Merck & Co. Inc. (MRK) $83.96 -1.67%
Amgen Inc. (AMGN) $280.10 -1.32%
Coca-Cola Co. (KO) $68.25 -1.17%
American Express Co. (AXP) $330.65 -0.16%
Dowdupont Inc. (DWDP) $0.00 0.00%
Walgreens Boots Alliance, Inc. (WBA) $11.98 0.00%
S&P 500 - Risers
Macy's Inc. (M) $17.24 27.80%
Nektar Therapeutics (NKTR) $35.98 26.02%
Bath & Body Works, Inc. (BBWI) $31.87 7.81%
Sl Green Realty Corp. (SLG) $59.92 6.04%
T. Rowe Price Group Inc. (TROW) $111.52 5.84%
Gap Inc. (GAP) $23.93 5.79%
FMC Technologies Inc. (FTI) $39.65 5.59%
Western Digital Corp. (WDC) $90.49 5.22%
Vornado Realty Trust (VNO) $39.92 5.20%
Leggett & Platt Inc. (LEG) $9.79 5.16%
S&P 500 - Fallers
Gartner Inc. (IT) $236.73 -5.65%
NiSource Inc. (NI) $39.83 -5.41%
MGM Resorts International (MGM) $37.03 -4.83%
AES Corp. (AES) $12.81 -4.47%
Elevance Health Inc. (ELV) $308.05 -4.43%
Texas Instruments Inc (TXN) $187.29 -4.32%
American Airlines Group (AAL) $12.86 -4.32%
Philip Morris International Inc. (PM) $161.15 -3.73%
CF Industries Holdings Inc. (CF) $84.18 -3.72%
Estee Lauder Co. Inc. (EL) $87.46 -3.67%
Nasdaq 100 - Risers
Qvc Group Inc Series A (QVCGA) $9.84 20.74%
Western Digital Corp. (WDC) $90.49 5.22%
Micron Technology Inc. (MU) $124.21 4.62%
Seagate Technology Plc (STX) $183.98 4.34%
Amazon.Com Inc. (AMZN) $235.68 4.29%
KLA-Tencor Corp. (KLAC) $873.29 3.48%
eBay Inc. (EBAY) $93.03 3.18%
Intuitive Surgical Inc. (ISRG) $454.52 3.02%
DENTSPLY Sirona Inc. (XRAY) $14.33 3.02%
Lam Research Corp. (LRCX) $100.42 2.74%
Nasdaq 100 - Fallers
Texas Instruments Inc (TXN) $187.29 -4.32%
American Airlines Group (AAL) $12.86 -4.32%
Biomarin Pharmaceutical Inc. (BMRN) $56.75 -3.78%
Wynn Resorts Ltd. (WYNN) $122.89 -2.10%
Incyte Corp. (INCY) $85.44 -1.75%
Dollar Tree Inc (DLTR) $100.25 -1.74%
Paypal Holdings Inc (PYPL) $68.46 -1.69%
Amgen Inc. (AMGN) $280.10 -1.32%
NetEase Inc. Ads (NTES) $133.14 -1.26%
Adobe Systems Inc. (ADBE) $344.31 -1.20%
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