Stocks Hold Steady After Robust Jobs Report; Meta Jumps on Cost-Cutting Moves

The S&P 500 edged up 0.2% early Thursday, while the Nasdaq 100 hovered near the flatline as trading kicked off at 9:32 a.m. in New York. Meta Platforms Inc. was one of the session’s standout movers, climbing 4% after reports surfaced that Mark Zuckerberg plans to significantly scale back spending on the company’s metaverse ambitions, according to people familiar with the matter.

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Fresh labor-market data added support to the broader market tone. New filings for US unemployment benefits dropped to their lowest level in more than three years, signaling that employers remain reluctant to trim staff even as headlines highlight notable job cuts across several industries.

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Another update from Challenger, Gray & Christmas showed that announced layoffs declined in November after spiking the month before. Still, last month marked the highest layoff total for any November in the past three years, underscoring lingering caution among US companies despite recent signs of stabilization.

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Hopes for an interest-rate cut at the Federal Reserve’s December meeting bolstered further by Wednesday’s soft ADP employment reading continue to fuel the market’s rebound following November’s pullback. The rate-sensitive Russell 2000 is now hovering just below a record, extending its strong momentum after surging nearly 2% on Wednesday.

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Market breadth is also improving, with major US indexes holding above key moving averages and maintaining constructive technical setups. The equal-weighted S&P 500 is nearing an all-time high, a sign that participation in the stock market’s advance is broadening beyond mega-cap technology names.

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“Technology has been one of the strongest performers this year, but if you strip that sector out of the S&P 500, the rest of the index has already moved to new highs,” said JC O’Hara, chief technical strategist at Roth Capital Partners. “That tells us that even though tech is experiencing bouts of volatility, the average stock is still trending higher.”

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Historical market patterns suggest the ongoing rally which began in fall 2022 could continue into the new year. According to Keith Lerner, Truist’s chief investment officer and chief market strategist, past bull markets that extended into a third year all delivered gains in their fourth. “Across the seven prior instances, markets posted an average return of 15% in year four,” Lerner wrote. “Combined with the historically strong performance following rate cuts and similar macro cycles, there is a compelling case for high-single-digit to low-double-digit returns next year.”

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Equity flows could add another tailwind. JPMorgan strategists estimate net stock demand could reach $700 billion in 2026, the highest level since 2023. The bank expects investors to continue gravitating toward US equities, supported by the country’s leadership in artificial intelligence and its relative strength compared to Europe and emerging markets.

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Corporate updates added more movement across individual names. Bill Holdings Inc. rose 1.7% after activist investor Barington Capital Group disclosed a stake in the payments software provider. Dollar General also advanced after lifting its full-year outlook, reinforcing the strength of discount retailers as cost-conscious consumers seek better deals. Meanwhile, Kroger Co. fell 4% after trimming the top end of its annual sales forecast, signaling intensifying competition among grocery chains vying for increasingly picky shoppers.

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In the tech sector, Salesforce Inc. traded higher after delivering a revenue forecast for the current quarter that surpassed Wall Street expectations, suggesting the company is gaining traction with its suite of AI-powered tools.

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On the other hand, Snowflake shares declined following an outlook that projected operating margins below analysts’ estimates. Several analysts also pointed out a slowdown in the company’s product revenue growth, raising questions about near-term demand momentum.

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