NEW YORK (AP) — U.S. stocks are hovering near record highs after a jobs report that showed a slowdown in hiring and provided valuable data for optimists and pessimists alike. The S&P 500 was little changed at the start of trading Friday. The Dow Jones Industrial Average was down 0.1%, while the Nasdaq Composite Index was up 0.1%. Treasury yields fell after the mixed U.S. jobs report, which strengthened Wall Street’s view that U.S. economic growth will slow and the Federal Reserve will cut interest rates later this year. Bitcoin fell again, returning to February levels against the dollar.
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(AP) — Wall Street was weak and mixed in post-holiday trading ahead of the release of June jobs data that could influence the Federal Reserve’s next interest rate decision.
S&P 500 futures were up less than 0.1% before the close on Friday, while Dow Jones Industrial Average futures were down less than 0.1% after the July 4th Independence Day holiday.
The U.S. government is due to release a comprehensive update on how many workers employers added in June, with traders closely watching the figures to suggest the economy has slowed enough to prove inflation is under control but not enough to tip the economy into a recession.
That would increase the likelihood that the Federal Reserve would cut interest rates, which have been held at two-decade highs, easing pressure on the economy by lowering borrowing costs.
Economists believe employers added 190,000 jobs, a solid increase, though down from a robust 272,000 in May. Job openings have also been falling steadily this year. Layoffs have remained relatively low but have risen over the past month or so, and the number of Americans receiving unemployment benefits is at its highest level since late 2021.
Anderson Alves of Active Trades said the report “will play a key role in shaping near-term Fed rate cut expectations,” adding: “The market currently expects a reasonable probability of two rate cuts this year, while the median Fed forecast is for just one rate cut in 2024.”
Tesla rose another 1.7% early Friday, on track for an eighth straight day of gains after reporting earlier this week that its sales last quarter fell again, but not as sharply as many thought. The company’s shares have risen about 36% since June 24.
Meanwhile, stock prices across Europe rose broadly following Britain’s Labour Party’s victory over the Conservative Party in this week’s general election.
In London, the FTSE 100 initially rose 0.3% before falling again to zero. The British pound rose to $1.2786 from $1.2760 at Thursday’s close. The euro rose to $1.0821 from $1.0812.
Britain has endured several turbulent years under Conservative governments, leaving many voters pessimistic about the country’s future. Britain’s departure from the European Union was followed by the coronavirus pandemic and Russia’s invasion of Ukraine, which hit the economy hard. Rising poverty and cuts to public services have led to discontent with a “broken Britain.”
Labour leader Keir Starmer faces a daunting task of revitalising a stagnant economy and a depressed nation.
Germany’s DAX shares rose 0.8% after the German government agreed on a 2025 budget and stimulus package for Europe’s largest economy, ending months of wrangling that had threatened to topple Chancellor Olaf Scholz’s center-left coalition.
The disagreements have led to the collapse of an already unpopular government, triggering early parliamentary elections and raising speculation that Germany could follow other European countries in moving politically to the right.
The CAC 40 in Paris rose 0.3 percent.
In Asian markets, Japan’s stock benchmark Nikkei average rose above 41,000 yen early on Friday, but was down from a record high of 40,913.65 yen on Thursday. The Nikkei average fell just over a point to close at 40,912.37 yen after the government said consumer spending in May fell 1.8 percent more than expected.
The dollar fell to 160.66 yen from 161.26 yen.
Hong Kong’s Hang Seng Index fell 1.3% to 17,799.61, while the Shanghai Composite Index dropped 0.3% to 2,949.93. The Shanghai Composite Index is trading near its lowest since February.
Seoul’s composite stock price index (KOSPI) rose 1.3 percent to 2,862.23 after Samsung Electronics forecast that its second-quarter operating profit would rise to 10.4 trillion won ($7.52 billion), more than 15 times higher than the same period last year.
Like other computer chip makers such as Nvidia, Taiwan’s TSMC and Tokyo Electron, Samsung is benefiting from a recovery in the semiconductor industry fueled by the spread of artificial intelligence applications.
Elsewhere in the region, Australia’s S&P/ASX 200 fell 0.1% to 7,822.30, Taiwan’s Taiex rose 0.1% and Bangkok’s SET added 0.8%.
Benchmark U.S. crude oil prices rose 1 cent to $83.87 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, fell 13 cents to $87.30 a barrel.
Bitcoin crashed again, dropping another 3.8%. The cryptocurrency had already lost more than 13% of its value in the first five days of July, to its lowest level in months.
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