Market Updates and Analysis: S&P 500 Closes Flat, Traders Await Jobs Report

The S&P 500 closed near the flatline on Thursday, with investors eagerly awaiting the jobs report set to be released on Friday. The S&P 500 slipped 0.02% to close at 5,352.96, while the Nasdaq Composite pulled back 0.09% to 17,173.12. On the other hand, the Dow Jones Industrial Average added 78.84 points, or 0.20%, to finish the session at 38,886.17.

UBS Global Wealth Management’s chief investment officer, Mark Haefele, expressed optimism about the market’s future, stating that strong market fundamentals justify a further equity rally. He believes that the S&P 500 could reach 5,500 by year-end due to factors such as Fed rate cuts, robust profit growth, and the growth trend brought by artificial intelligence (AI).

Deutsche Bank also weighed in, forecasting that Friday’s nonfarm payrolls report for May could show U.S. unemployment at 3.9%, potentially marking the longest stretch of sub-4% unemployment since the early 1950s. This historical trend suggests potential upside risk to economic growth in the coming years.

In the tech sector, Nvidia’s momentum has been remarkable, with its relative strength index (RSI) above 70 nearly 50% of the time this year. This overbought status typically signals a potential pullback, but Nvidia’s rally has been relentless.

Other notable movements in the market include stocks like Five Below, Salesforce, Lululemon, and Instacart, each making significant moves based on earnings reports and other announcements.

Overall, the market remains cautiously optimistic as investors await key economic data and reports to guide their future investment decisions. The upcoming jobs report and ongoing developments in various sectors will continue to shape market trends in the days ahead.