Nasdaq Leads Gains as Investors Digest Jobs Data and Slumping Oil Prices

U.S. stocks ended mixed Wednesday, with the Nasdaq Composite rising strongly while the Dow Jones Industrial Average slipped, as investors parsed fresh labor-market data, falling oil prices, and signs of a cooling economy.

The Dow Jones Industrial Average eased 24.92 points, or 0.06%, to 45,270.9. The S&P 500 added 32.74 points, or 0.51%, closing at 6,448.28, while the Nasdaq Composite jumped 218.10 points, or 1.02%, to 21,497.7.

Broadcom’s AI Boom: Can They Really Keep 60% Growth?

Broadcom heads into its quarterly report Thursday with investors laser-focused on its role as one of the most critical suppliers to the AI build-out. The company has guided to fiscal third-quarter revenue of about $15.8 billion, including $5.1 billion in AI semiconductor sales, a figure that would mark roughly 60% year-over-year growth . Analysts expect strength in custom AI accelerators and Ethernet networking to drive results, while attention is also on whether non-AI semiconductors can rebound after several soft quarters.

CFRA’s Angelo Zino said, “The story will continue to be AI… we do think [they’ll] be… able to sustain these margins or roughly around a fairly tight range here over the next couple of quarters,” highlighting the balance between AI’s rapid revenue expansion and the risk of gross-margin dilution . With shares up about 23% in the past three months and trading at roughly 37 times forward earnings, well above historical averages, Broadcom faces a high bar: confirmation of new AI customer ramps and resilient software margins could justify the premium, while any slip in mix or margins risks a pullback.

Jobs Market Shows Cooling Signs

The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) for July showed that job openings were little changed at 7.2 million, while hires and separations held steady at 5.3 million. Quits, often a gauge of worker confidence, stayed at 3.2 million. Job openings fell in health care, arts and recreation, and mining, while professional services saw more quits.

The data reflect a labor market that has lost some momentum. The Bank of America Institute noted that unemployment among recent college graduates has “consistently outpaced that of all workers” since the pandemic—a reversal from the prior decade’s trend. More than 13% of unemployed Americans in July were new entrants with no prior work experience, the highest share since 1988 .

The Federal Reserve’s Beige Book, released Wednesday, reported most districts saw “flat to declining consumer spending” as wages lagged rising costs for insurance, utilities, and essentials. Labor markets were broadly stable but with “hesitancy to hire” and an uptick in layoffs in some regions .

Broader Economic Backdrop

Housing and migration data suggest that Americans remain reluctant to move, constrained by high mortgage rates. Bank of America research found U.S. domestic moves were still down about 20% compared with 2020, with the “lock-in effect” especially acute in the West where many households carry older low-rate mortgages .

On credit markets, Apollo Global Management noted that while tariff shocks earlier in the year caused dislocations, strong institutional demand has since stabilized conditions. However, capital is “rebalancing away from the U.S.,” with sovereign funds shifting into European assets, raising questions about the durability of U.S. financial dominance.

Commodities Send Mixed Signals

Energy prices retreated sharply. U.S. crude oil for October delivery fell 2.68% to $63.83 a barrel, hitting levels near many producers’ breakeven points. Analysts said softening global demand and tariff-related policy uncertainty weighed on the commodity.

Meanwhile, safe-haven assets found support. Gold futures for December settled up 0.76% at $3,619.50 an ounce, extending recent gains as investors sought protection against geopolitical volatility and fiscal policy risks .

Investors are weighing the cooling labor market against a backdrop of sticky inflation pressures and elevated uncertainty. The Beige Book flagged “tariffs and rising input costs” as persistent concerns for businesses, while consumer spending remains price sensitive .

For equities, the mix of resilient tech earnings, weaker energy, and signs of labor-market softening left markets divided. The Nasdaq’s surge underscored optimism about AI-linked growth, while the Dow’s slip reflected pressures on cyclical names.