Last updated: 4:25 PM EST
Stock indexes ended today’s trading in the positive.Nedix), S&P 500 (Spocks), Dow Jones Industrial Average (DJIA) rose 1.02%, 0.55%, and 0.17%, respectively. Earlier today, the Bureau of Labor Statistics released the US Nonfarm Payrolls report. Payrolls rose to 206,000 in June, up from a revised 218,000 increase in May. This was above the 200,000 increase economists had expected. Interestingly, however, the unemployment rate rose to 4.1%, up from 4% the previous month.
The Fed also reported in a report to Congress that inflation has eased and the job market has returned to a “tight but not overheated” state, similar to what it was before the coronavirus pandemic. The Fed said conditions are returning to normal and that it expects home prices to stabilize soon.
Moreover, the job market has been balanced this year, with fewer job openings and more people looking for work, largely due to rising immigration, and a good balance between job supply and demand, which has led to slowing wage growth.
All of these factors combined have raised optimism among investors that the Federal Reserve could cut interest rates sooner. Indeed, the market-implied probability of a September rate cut has risen to more than 71% now, up from 58% a week ago, according to the CME FedWatch tool.
First Published: 3:31 AM EST
U.S. futures were roughly flat on Friday morning as investors prepared for the release of key employment data. Nasdaq 100 futures (Nedix), S&P 500 (Spocks), Dow Jones Industrial Average (DJIA) were up about 0.19%, 0.13%, and 0.15%, respectively, as of 3:02 a.m. ET on July 5.
All major stock indexes are on track to finish the holiday-shortened week in the positive, with the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average up 2.5%, 1% and 0.5%, respectively, so far this week.
On today’s economic reporting calendar, investors await the release of data points for nonfarm payrolls and the unemployment rate for the past month. Economists expect nonfarm payrolls to have increased by 200,000 in June and the unemployment rate to have stabilized at 4%.
Investors will be closely analyzing the report, with a focus on how the information might affect the Federal Reserve’s future monetary policy decisions, as recent economic data suggests a possible slowdown.
Meanwhile, the 10-year U.S. Treasury yield has risen and is trading around 4.35% as of the time of writing, while WTI crude oil futures are trending lower, trading around $83.68 per barrel as of last check.
Meanwhile, European markets are expected to open higher today ahead of the UK general election results.
Asia Pacific markets fall on Friday
Most Asia Pacific markets fell today as investors remained cautious ahead of next week’s release of China’s consumer and producer price indexes for June, which will provide insight into inflationary pressures in the economy.
At the time of writing, Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index are down 0.95% and 0.26%, respectively. At the same time, Japan’s Nikkei Stock Average and TOPIX are down 0.003% and 0.49%, respectively. However, China’s Shenzhen Composite Index is up 0.27%.
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