U.S. stocks were little changed on Friday as investors kept a close eye on GameStop (GME) shares and Nvidia’s (NVDA) stock split ahead of the monthly jobs report that will have a major impact on hopes for interest rate cuts.
Futures for the S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) were flat after the three major indexes traded in lackluster conditions on Thursday. Futures for the tech-heavy Nasdaq 100 (NQ=F) were little changed.
Stocks are set to post a weekly gain as data suggesting a cooling labor market has strengthened expectations that the Federal Reserve may start cutting interest rates from their 20-year highs.
The highly anticipated May jobs report, due at 8:30 a.m. ET on Friday, may test that optimism, as a small increase in nonfarm payrolls and a flat unemployment rate are expected to point to further signs of weakness in the labor market.
As Yahoo Finance’s Josh Schaefer reports, the key question is whether the slowdown in monthly job gains is simply a sign of a normalization of the labor market or an early sign of a broader economic slowdown, a debate that will likely feed into the Federal Reserve’s deliberations at its policy meeting next week.
read more: How does the labor market affect inflation?
Everyone is also eagerly awaiting an apparently promised livestream from GameStop backer Keith Gill, aka “Roaring Kitty.” The event, scheduled for noon ET on Friday, will be Gill’s first live YouTube appearance since fueling the meme stock’s rise three years ago.
GameStop shares soared in premarket trading on Friday, closing 47% higher, before plummeting after the video game retailer reported a drop in quarterly sales.
Nvidia is also due to complete a 10-for-1 stock split after the market closes. A midweek rally in shares had briefly boosted the AI ​​chipmaker’s market capitalization to $3 trillion, but short selling has piled up and the stock has lost steam.
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