US: Employment slows, stocks react in different directions

💼 Key highlights on Wall Street: weak jobs data and corporate earnings

Today, investors’ attention was focused on fresh US labor market data, which came in noticeably weaker than expected and set the tone for the trading day.

Labor market: first signs of cooling

• The ADP report (a private indicator of employment trends in companies) showed a gain of only 54,000 jobs in August. The forecast was 68,000, while the previous month recorded 104,000. This indicates a slowdown in hiring.

• Initial jobless claims rose to 237,000, exceeding both the forecast (232,000) and the previous value (229,000). This means more Americans are filing for support after losing their jobs.

Why it matters

Weak employment data increases the likelihood that the Federal Reserve (Fed) will be forced to ease policy and lower interest rates to support the economy. Traditionally, this is a positive factor for the stock market, especially for growth stocks and the tech sector, which are sensitive to borrowing costs.

Corporate earnings: notable stock movements

Against the macroeconomic backdrop, investors also closely watched corporate results, which led to significant stock fluctuations:

• American Eagle (AEO) +26% — quarterly earnings beat expectations; the company raised its annual forecast. Additional positive factors included marketing collaborations: an ad campaign with actress Sydney Sweeney and a partnership with NFL player Travis Kelce.

• Salesforce (CRM) –7% — despite earnings above expectations, the market reacted negatively to weak revenue guidance. Investors fear a slowdown in demand for enterprise software.
• C3.ai (AI) –14% — dropped after earnings; investors question the company’s growth pace amid intense AI competition.
• Ciena (CIEN) +15% — strong quarterly results, with demand for telecom equipment supporting stock gains.

• Credo Technology (CRDO) +12% — positive movement after reporting.
• Figma (FIG) –15% — investors disappointed by results and guidance.
• GitLab (GTLB) –7% — decline following earnings release.

• Hewlett Packard Enterprise (HPE) +4% — growth due to stable financial performance.

💡 Daily summary

The US stock market received two opposing impulses. On one hand, employment data indicate a weakening labor market, raising the likelihood of Fed policy easing and supporting growth stocks, primarily in tech. On the other hand, corporate earnings caused significant stock movements: some companies posted impressive gains on strong results (American Eagle, Ciena, Credo), while others came under pressure (Salesforce, C3.ai, Figma).

Overall, the day highlighted a key feature of today’s market: macroeconomic factors set the general tone, but the fate of individual stocks is determined by the quality of earnings and investor expectations.