US markets were mixed on Thursday as investors positioned for next week’s interest rate decision from the Federal Reserve. The S&P 500 rose 0.11% to 6,857, while the Nasdaq Composite added 0.22% to close at 23,505. The Dow slipped 32 points, ending marginally lower at 47,851.
Treasury yields pushed higher and bitcoin softened, briefly pulling back 0.5% after dipping below $85,000 earlier in the week. The cryptocurrency has since stabilised above the $90,000 mark, offering some support to sentiment after a volatile stretch.
Market attention centred on labour indicators. Challenger, Gray & Christmas reported that announced job cuts from US employers have surged past one million this year, driven by restructuring, automation and tariff pressures. The report followed a weaker-than-expected ADP reading on Wednesday, adding to signs that the labour market is cooling.
Softening labour market fuels rate-cut expectations
Mounting evidence of slowing job growth has solidified expectations of a June 10 rate cut. Markets are now pricing in an 87% chance of a quarter-point reduction, sharply higher than just weeks ago.
Weekly jobless claims, typically volatile around holidays, fell to 191,000, the lowest level since September 2022 and well below forecasts. Despite the seasonal distortions, the reading reinforced the view that economic conditions remain stable enough for the Fed to press ahead with easing.
Corporate movers: software and discount retail outperform
In corporate news, Salesforce rose more than 3% after issuing a stronger-than-expected revenue outlook. Discount chain Five Below also gained over 3% as earnings exceeded analyst forecasts. These gains helped offset weakness in the broader tech sector, which continued to wobble following declines in Microsoft, Nvidia and Broadcom.
Local outlook
Australian shares are poised to open higher, with SPI futures up 20 points or 0.2% to 8635. Today’s local calendar includes Premier Investments’ annual general meeting and Arafura’s extraordinary general meeting. Looking ahead, US personal spending and consumer sentiment data are due at 2am Saturday AEDT.
