U.S. stocks rallied strongly on Thursday evening as clearer signs from the ADP Non-Farm data indicated that the labor market is gradually cooling, boosting expectations of a rate cut as early as September — significantly improving market sentiment.
Tech giants such as Alphabet and Apple continued to gain after a Google ruling, underscoring that AI remains a hot sector. With the Fed’s upcoming potential rate cut, this could act as a strong catalyst for the stock market, as businesses may ease the pressure from high borrowing costs in a persistently high interest rate environment.
September began with a slow and stagnant pace due to the impact of Donald Trump’s tariff uncertainties and the U.S. President’s efforts to dismiss a Fed governor in an attempt to influence the central bank’s independence.
Today, the market’s attention is on the Non-Farm Payrolls (NFP) data. If the labor market continues to weaken, it will serve as a powerful lever to drive the market higher tonight.
Technical Analysis:
In the short term, the S&P 500 shows signs of breaking out above its previous ATH to set a new ATH at 6,542.91, following the trendline.
However, if it fails to break the ATH, there is a possibility of a correction back to 6,468 according to Fibonacci before continuing to create a new ATH.
_Trí Hùng_
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