Investing.com-- U.S. stocks traded in a mixed fashion Thursday, with the tech rebounding after the previous session's mauling while weak labor data weighed on the broader market.
At 09:35 ET (13:35 GMT), Dow Jones Industrial Average fell 100 points, or 0.2%, while S&P 500 rose 13 points, or 0.2%, and NASDAQ Composite rose 110 points, or 0.6%.
Growing bets on early interest rate cuts by the Federal Reserve also spurred a broader pivot away from technology stocks and into more growth-sensitive sectors. This saw the Dow Jones Industrial Average surge to record highs,gaining 0.6%, while the S&P 500 fell 1.4% and the NASDAQ Composite dropped 2.8%, its worst session since 2022.
Chip stocks bounce after selloff
Tech sentiment has been boosted Thursday after Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract chipmaker, posted second-quarter profit above expectations and forecast strong third-quarter revenue.
The sector suffered a sharp selloff in the previous session, following reports that the Biden administration was considering more export curbs on China, particularly in chipmaking technology. This battered the sector, given that it could herald lower sales in China, which is a major consumer of chips.
Concerns over heightened geopolitical tensions between China and Taiwan also dented chip stocks, after Republican Presidential candidate Donald Trump said Taiwan should pay the U.S. for defense supplies.
Jobless claims due
However, data released earlier Thursday showed the number of Americans filing new applications for unemployment benefits rose more than expected last week, climbing 20,000 to a seasonally adjusted 243,000 for the week ended July 13, the Labor Department said on Thursday, above the 229,000 claims expected.
Claims were revised lower in the prior week, but the unemployment rate rose to a 2-1/2-year high of 4.1% in June.
This suggests the labor market is cooling as the Federal Reserve's interest rate increases in 2022 and 2023 slow demand.
Fed officials Lorie Logan, Mary Daly and Michelle Bowman are expected to make speeches later in the day, and investors will be looking for signs that the policymakers are edging towards an interest rate cut in September.
Investors are pricing in a more than 91% chance of a 25-basis point interest rate cut from the Fed by its September meeting, according to CME's FedWatch.
Netflix earnings awaited
Focus remained on the second quarter earnings season, with entertainment giant Netflix (NASDAQ:NFLX) set to report earnings after the close Thursday.
Netflix has already guided for lower net subscriber additions in the second quarter than in the first three months of the year.
LSEG forecasts that it will have added an estimated 4.82 million subscribers in the second quarter, which would be the lowest additions since the first quarter of 2023 and about half the 9.3 million it added in the previous three months.
Elsewhere, DR Horton (NYSE:DHI) stock rose 6% after the homebuilder beat estimates for quarterly profit, and also approved a new share buyback authorization totaling $4 billion.
Domino’s Pizza (NYSE:DPZ) stock slumped 11% after the pizza chain missed estimates for quarterly same-store sales, as inflation worries discouraged U.S. consumers.
Beyond Meat (NASDAQ:BYND) stock dropped 10% following a report the plant-based meat producer has engaged with bondholders to begin discussions about restructuring its balance sheet.
(Ambar Warrick contributed to this article.)