Nasdaq Hits Record as Nvidia Leads Rally While Yields Ease on Soft Jobs Data

U.S. stock indexes rose on Thursday as Treasury yields pulled back after a batch of jobs data came in softer than economists had anticipated, giving investors reason to believe the Federal Reserve may have more room to ease monetary policy. The Nasdaq Composite climbed to a new record high, driven largely by gains in Nvidia and other technology names tied to artificial intelligence spending.

Lower bond yields tend to make growth and technology stocks more attractive to investors, since future earnings are discounted at a lower rate. That dynamic was on display Thursday, with megacap technology companies outperforming the broader market and helping lift the Nasdaq past its previous highs.

Dow on Pace for a Losing Week

Despite the rally in technology shares, the blue-chip Dow Jones Industrial Average was on track to close the week lower, reflecting a divergence between sectors that benefit from falling rates and more cyclical or value-oriented companies that make up a larger share of the Dow's composition.

The jobs report that triggered the move in yields pointed to a cooling labor market, a signal that investors have increasingly interpreted as supportive of further interest rate cuts. Softer employment data reduces inflationary pressure tied to wage growth, giving the Fed additional justification to lower borrowing costs.

Nvidia's continued strength remained a focal point for the broader market, with the chipmaker's performance seen as a bellwether for investor appetite toward artificial intelligence-related investment. Market participants will be watching upcoming economic data and Fed commentary for further signals on the path of interest rates in the weeks ahead.