S&P 500 Hits New High on Jobs Report Eve Amid Economic Data Confirmation of Labor Market Slowdown

The S&P 500 hit a new high on Thursday as investors looked beyond disappointing earnings reports from high-profile software makers and focused on incoming economic data. The market expects a slowdown in the labor market, with a jobs report due Friday. The Dow Jones Industrial Average and Nasdaq Composite also rose, with the yield on the 2-year US Treasury note dipping and gold futures trading near all-time highs. The unemployment rate is expected to remain at 4.2%.

The S&P 500 (^GSPC) surged to a new record high on Thursday, September 2, 2025, despite mixed earnings reports from major software companies and amid expectations of a slowdown in the labor market. The index closed at 6,502.08, up 0.8% from Wednesday's close [1]. The tech-heavy Nasdaq Composite (^IXIC) also gained nearly 1%, while the Dow Jones Industrial Average (^DJI) rose by nearly 0.8%.

The market's focus was primarily on the incoming economic data and the Federal Reserve's potential actions. The ADP report showed private payrolls grew by 54,000 in August, falling short of estimates for 65,000. Additionally, weekly jobless claims rose above expectations, hitting their highest level since June [1]. These indicators suggest a weakening labor market, which could influence the Fed's decision to cut interest rates at its September meeting. Traders are currently pricing in a 97% chance of a rate cut [1].

Nvidia Corp. (NVDA) reported strong fiscal second-quarter earnings, with revenue and earnings per share (EPS) exceeding Wall Street expectations [2]. However, the company's data center revenue fell short of expectations due to restrictions imposed by the Trump administration in April [3]. Despite this, Nvidia remains optimistic about its future performance, expecting quarterly sales to reach $54 billion in the third quarter [2].

On the corporate front, American Eagle (AEO) shares soared after the apparel retailer predicted a sales boost thanks to ads featuring actress Sydney Sweeney and NFL player Travis Kelce [1]. Broadcom (AVGO), Lululemon (LULU), and DocuSign (DOCU) are also set to report earnings on Thursday [1].

The yield on the 2-year US Treasury note dipped slightly, while gold futures traded near all-time highs. The unemployment rate is expected to remain at 4.2% [4].

In summary, the S&P 500 hit a new high on Thursday, driven by mixed earnings reports and incoming economic data. The market is closely watching the Fed's potential rate cuts and the upcoming jobs report due on Friday.

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-rise-amid-weak-adp-jobs-data-mirans-fed-senate-hearing-134011223.html
[2] https://www.ainvest.com/news/nvidia-leads-500-record-high-strong-economic-data-2508/
[3] https://finance.yahoo.com/news/buy-nvidia-solid-q2-2026-124200752.html
[4] https://www.newsmax.com/finance/streettalk/unemployment-jobs-labor/2025/09/04/id/1225049/