S&P 500 advances after cutting losses as dip buyers push tech higher

By Yasin Ebrahim

Investing.com -- The S&P 500 advanced after cutting losses Thursday, shrugging off fears about the economy despite further signs that the labor market is cooling ahead of the all-important monthly jobs report due Friday.

The S&P 500 fell 0.4%, the Dow Jones Industrial Average gained 0.1%, or 24 points, and the Nasdaq rose 0.8%.

Tech found its footing as investors bought the recent dip in the sector following days of selling, with Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) leading to the upside.

AI company C3 Ai Inc (NYSE:AI), meanwhile, rallied 9% after addressing some of Kerrisdale Capital’s claims that flagged concerns about the company’s accounting.

Treasury yields remained close to the highs of the session, albeit in subdued market action, even as data showed further evidence that the labor market is cooling.

Initial jobless claims fell 18,000 from 246,000 in the week ending April 1, topping economists’ forecast for 200,000 claims and stoked expectations that the labor market is cooling.

The rise in jobless claims has been a “key missing part of the labor market story, but it is now clear layoffs are increasing, while other data - notably the NFIB survey - point to much slower gross hiring,” Pantheon Macroeconomics said in a note.

The data arrive just a day ahead of the monthly nonfarm payrolls data for March that is expected to show the economy created 239,000 new jobs last month.

Energy stocks stumbled after oil prices struggled for direction as investors weighed weaker crude supply against ongoing fears about demand amid signs of a slowing economy.

Marathon Petroleum (NYSE:MPC), Schlumberger NV (NYSE:SLB), and Occidental Petroleum Corporation (NYSE:OXY) were down more than 1%.

On the earnings front, Levi Strauss&Co (NYSE:LEVI) reported fourth-quarter results that topped Wall Street estimates but the apparel company reiterated its guidance amid caution about the economic outlook.

Costco Wholesale (NASDAQ:COST) fell more than 2% after reporting a 1.1% drop in comparable sales to $21.71 billion for the retail month of March.

Boeing (NYSE:BA), meanwhile, advanced slightly, as the aircraft maker plans to boost the production of its 737 jets to 38 planes a month by mid-2023, Bloomberg reported, citing unnamed sources.

In meme-related news, AMC Entertainment (NYSE:AMC) jumped more than 20% while Bed Bath&Beyond (NASDAQ:BBBY) fell 8% to a fresh 52-week low after detailing plans for a stock split that will help the struggling retailer raise capital and avoid bankruptcy.