What to Know Ahead of Thursday's Stock Market Opening

Market Reaches New Milestones

The S&P 500 and Nasdaq Composite both reached record highs on Wednesday.

The S&P 500 closed at 5,354.03, up 1.18%, and also hit an intraday high of 5,354.16. The Nasdaq Composite rose 1.96% to 17,187.90.

Meanwhile, the Dow Jones Industrial Average lagged slightly, rising 0.25% to 38,807.33. These milestones reflect investor confidence and strong market performance, continuing the upward trend seen in recent months.

Hopes for Rate Cuts Rise

A series of weak labor market reports has increased hopes for a Federal Reserve rate cut by September.

ADP private payrolls data and a softer reading on job openings suggest the labor market is cooling, which could lead to lower inflation. Traders are now betting on a 25 basis point rate cut in September.

The Bank of Canada’s rate cut on Wednesday and an anticipated cut from the European Central Bank have added to the optimism. Attention is now on upcoming labor market data, including initial jobless claims and the nonfarm payrolls report, ahead of the Fed's meeting next week.

Premarket Movers:

Nvidia Hits $3 Trillion Market Cap

Nvidia’s stock (NASDAQ: NVDA) surged, pushing the company's market cap past the $3 trillion mark.

Closing at $3.019 trillion, Nvidia has now overtaken Apple (NASDAQ: AAPL), which has a market cap of $2.99 trillion. The chipmaker's growth is driven by the booming artificial intelligence sector, making it the second most valuable publicly traded company in the U.S.

Nvidia's stock has jumped over 24% in the weeks following its latest earnings report, highlighting its role as a leader in tech innovation.

Crude Oil Prices Face Weekly Losses

Crude oil prices edged higher on Thursday but are set for significant weekly losses. U.S. crude futures (WTI) traded 0.4% higher at $74.36 per barrel, and Brent crude climbed 0.3% to $78.61 a barrel. Both contracts are down about 4% for the week. The decline is attributed to the OPEC decision to allow voluntary output cuts to be gradually unwound starting in October and an unexpected rise in U.S. crude stocks by 1.2 million barrels, contrary to expectations of a drawdown.