4:15pm: Tech stocks higher
Stocks eked out another day of gains ahead of an anticipated interest rate reduction from the Federal Reserve next week.
The Nasdaq and the S&P 500 saw their fourth straight days of gains, adding 1% at 17,569 points and 0.7% at 5,595 points, respectively. The Dow Jones gained 0.6% at 41,096 points.
2:55pm: More insight into Moderna
More insight into Moderna's stock tank, from Jefferies.
Moderna is delaying its profitability forecast and implementing cost cuts that won't fully take effect until 2027. The company now plans to reduce research and development (R&D) spending by $1.1 billion, but the majority of those cuts are postponed until 2027, with some beginning in 2026. As a result, Moderna has pushed its profitability timeline to 2028, two years later than its previous 2026 target.
In its latest guidance, the biotech firm projects 2025 revenues between $2.5 billion and $3.5 billion, falling short of market expectations of $3.8 billion to $4 billion. While the company expects to have around $6 billion in cash by the end of 2025, at the lower end of prior guidance, concerns remain over whether it will need to raise additional equity to meet its goals.
Jefferies analysts noted that the update aligns with their expectations, though they anticipate ongoing debate among investors regarding the company's growth prospects and ability to achieve break-even without further capital raises.
12:50pm: Markets stabilize
Stocks rebounded on Thursday afternoon as investors assessed new inflation and labor data, with growing anticipation of a quarter-point interest rate cut by the Federal Reserve next week.
The S&P 500 gained 0.1%, the Nasdaq rose 0.3%, while the Dow Jones remained flat.
The market is stabilizing after a volatile Wednesday when tech stocks helped reverse earlier losses following a disappointing consumer inflation report.
The August Producer Price Index (PPI) indicated cooling inflation, with wholesale prices up 0.2% month-over-month and 1.7% year-over-year, in line with expectations. Meanwhile, initial jobless claims rose to 230,000, slightly higher than forecast. The odds of a 25-basis-point rate cut increased to 87%, up from 50% earlier in the week.
11:20pm: Stronger PPI data
PPI numbers came in slightly stronger than expectations in August.
Headline PPI rose by 0.2% m/m, while core and core-core rose by 0.3% month-over-month, around a tenth above consensus, according to Bank of America, who noted the prior month was revised down.
"Overall, we do not see much reason to worry in this report. producer price inflation does not suggest upside risk to consumer price inflation," analysts from BofA commented.
"We now expect core PCE to print at 0.1% m/m in August, which will only add to the Fed's confidence on disinflation.
"Still, the data today are unlikely to alter next week's decision. We still expect the Fed to cut rates by 25bp."
9.55am: Moderna tumbles
US markets opened flat today despite pre-market trades pointing to a relatively well-bid opening session.
The Nasdaq 100 tech index fell 0.2% to 19,202 while the Dow Jones Industrial Average dipped 0.15% to 40,804. The broader S&P 500 index also opened 0.2% lower a 5,541.
Moderna Inc (NASDAQ:MRNA, ETR:0QF) is dragging the market down with a brutal 17% fall after announcing jumbo $1.1 billion cost-saving plan.
This follows a rapid decline in its Covid-19 vaccine business.
Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) led the US risers with a 4% gain.
9.37am: US labour market softens
US employers cut 75,891 jobs in August, marking the highest total in five months and the largest for August since 2009, excluding the pandemic disruptions of 2020.
The data reflects growing signs of a softening US labour market, aligning with other recent key economic releases.
The job cuts were particularly pronounced in the tech sector, where 39,563 positions were eliminated.
“August’s surge in job cuts reflects growing economic uncertainty and shifting market dynamics,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas.
The data could galvanise the dovish faction of the Federal Reserve, which is gunning for a 50-basis-point interest rate cut later this month instead of a more-likely 25-basis-point cut.
8.28am: Nasdaq to open higher
US stocks are expected to make further gains when markets open today, following an exceptionally strong session on Wednesday.
Technology stocks including Nvidia Corp and Apple are expected to contribute to a 0.3% gain on the Nasdaq 100, while the Dow Jones Industrial Average is tipped to open 0.27% up.
Futures on the broader S&P 500 index have it opening 0.23% higher.
All eyes will be on the raft of employment data soon to be released and what the figures could mean for the Federal Reserve’s interest rate call later this month.
On the earnings front, Adobe Inc (NASDAQ:ADBE) is expected to deliver its third-quarter results.