U.S. stocks eye softer rate path as weak jobs data and analyst calls reshape market focus

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US stocks eye softer rates

Highlights

June nonfarm payrolls increase by 57,000 versus 115,000 expected, pushing stock futures higher and 2-year Treasury yields lower on softer rate expectations.
DA Davidson upgrades Palantir to buy with a $175 target (nearly 40% upside) as analyst activity drives sector rotation, with new and raised targets for Honeywell Aerospace, Delta Air Lines, United Airlines, DuPont, General Mills, and Cardinal Health.
OpenAI considers offering the U.S. government a 5% stake amid heightened AI policy focus, while Nvidia and Meta unveil new AI infrastructure monetization strategies watched by investors.

Jobs data and analyst actions drive Thursday positioning

As reported by CNBC, nonfarm payrolls in June rise by 57,000, well below the Dow Jones consensus of 115,000, prompting a stronger response in stock futures and a decline in the Fed-sensitive 2-year Treasury yield. The market reads the figures as a sign that the central bank may face less pressure to keep policy tight in the near term, while falling oil prices also help ease inflation concerns.

Among notable stock-specific calls, DA Davidson upgrades Palantir to buy from hold and sets a $175 price target, implying nearly 40% upside. Analysts say the data analytics company is expanding at an impressive pace and argue its valuation is now more attractive after a difficult year for many software names.

Elsewhere, BMO Capital initiates coverage on Honeywell Aerospace with a buy rating and a $276 price target, while Goldman Sachs lifts price targets on Delta Air Lines and United Airlines as lower fuel costs improve the sector outlook. Citi also nudges up its target on DuPont, and Bank of America raises targets on both General Mills and Cardinal Health after recent company developments and stronger operating momentum.

AI competition and sector rotation remain in focus

OpenAI has considered giving the U.S. government a 5% stake in the company, according to the Financial Times, as Chief Executive Sam Altman argues such a structure could allow the public to share in AI upside. The report adds another political and competitive dimension to the fast-moving artificial intelligence market, especially as pressure grows on OpenAI rival Anthropic.

Nvidia is rolling out a model that gives fast-growing AI startups quicker access to computing power in exchange for a share of future revenue, signaling a new approach to monetizing demand for AI infrastructure. Meta is also drawing attention with plans for a cloud business that would sell AI computing power, a strategy JPMorgan says could add meaningfully to its existing AI efforts even as investors weigh whether the company can expand infrastructure services while still prioritizing core product development.

Across the broader market, lower fuel prices are helping airlines and some industrial names, while healthcare shares are extending a recent rebound. With U.S. markets closed on Friday for the Independence Day observance, Thursday trading is concentrating investor attention on macro signals and broker calls that may shape positioning into next week.

Our earlier coverage of the June U.S. jobs report outlined the key takeaways from the Employment Situation release showing payrolls increased by 57,000, extending a run of monthly job gains. We also noted the policy narrative around private-sector, manufacturing and construction hiring, and why the data mattered for investor sentiment and expectations for the Federal Reserve’s next rate decision.

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