Close Menu
Stock Market

U.S. futures fall as jobs report beats expectations

prosperplanetpulse.comBy No Comments3 Mins Read0 Views


U.S. stocks fell on Friday after a jobs report that will determine hopes for interest rate cuts showed much stronger job growth than expected.

Futures for the S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) fell about 0.4% after the three major indexes traded lackluster on Thursday. Contracts for the tech-heavy Nasdaq 100 (NQ=F) were down about 0.3%.

Stocks are eyeing a weekly gain after labor market data suggested the economy was slowing and raised hopes the Federal Reserve may start cutting interest rates from 20-year highs.

The highly anticipated May jobs report may deal a bit of a blow to this view: the U.S. economy added 272,000 jobs in May, well above expectations, but the unemployment rate rose slightly to 4.0%.

read more: How does the labor market affect inflation?

Elsewhere in the market, investors are also bracing for an apparently promised livestream from GameStop (GME) promoter Keith Gill, aka “Roaring Kitty.” The event, scheduled for noon ET on Friday, will mark Gill’s first live YouTube appearance since fueling the meme stock’s rally three years ago.

GameStop shares closed 47% higher on Thursday but then plummeted after the video game retailer said it would sell up to 75 million shares and reported a drop in first-quarter sales.

Also looming after the market close is the completion of Nvidia’s (NVDA) 10-for-1 stock split. A midweek rally had briefly boosted the AI ​​chipmaker’s market cap to $3 trillion, but short selling has piled up and the stock has lost steam.

live2 Updates

  • Focus on Robinhood

    Robinhood (HOOD) has maintained some impressive streaks.

    First, the stock is up 27% over the past 30 days, and second, the news flow — from the launch of a new credit card to a strong first quarter report to yesterday’s $200 million acquisition of cryptocurrency exchange Bitstamp.

    “We believe this is a strategic move by HOOD to expand its crypto business and supports our thesis that HOOD is the best vehicle for seeking exposure to crypto equities at the start of an exciting new crypto cycle,” Bernstein’s Gautam Chugani said this morning.

    I had coffee with Robinhood co-founder and CEO Vlad Tenev yesterday afternoon after trading Bitstamp. He came away feeling confident but with a whole new level of experience, from the layoffs he experienced a few years ago to his testimony on the GameStop (GME) madness. Keep an eye out for the company’s next move in asset management.

    Below is our final chat from Yahoo Finance Live.

  • Important points to note when reading the employment report

    The market still seems keen to believe in a rate cut in 2024.

    So keep that in mind as you read today’s jobs report and consider how it might affect Fed policy.

    Following the ECB’s rate cut yesterday, Deutsche Bank’s Jim Reid made a good point this morning.

    “And while the tone was somewhat more hawkish in some respects, it became the fourth G10 central bank to cut rates, following Canada, Sweden and Switzerland. The move cements the idea that the global monetary policy cycle is moving toward easing mode, with investors expecting further rate cuts. It therefore marks a major shift from much of the past few years, when central banks were rapidly hiking rates to tame inflation.”



Source link

Share.

Related Posts

Add A Comment
Leave A Reply

Stay Connected

Twitter Linkedin-in Instagram Facebook-f Youtube

Subscribe