Today’s Stock Market: Stocks Slip but Secure Weekly Gains After Surpassing Jobs Report Expectations
US markets fell on Friday after jobs data that was considered critical to prospects for interest rate cuts revealed considerably greater hir
US markets fell on Friday after jobs data that was considered critical to prospects for interest rate cuts revealed considerably greater hiring growth than anticipated.
US markets declined on Friday after a critical jobs report revealed significantly higher hiring growth than anticipated, impacting prospects for interest rate cuts.
The S&P 500 and Dow Jones Industrial Average dropped by 0.1% and 0.2%, respectively, following a weak session on Thursday, while the tech-heavy Nasdaq Composite fell by 0.2%. Despite Friday’s downturn, all three indexes recorded weekly gains.
Weekly Market Review: Indexes Overcome Friday’s Slump to Secure Gains
Investors have been buoying stocks with the expectation that additional data might indicate an economic slowdown. However, the Labor Department’s report highlighted that certain economic sectors remain overheated, suggesting the Federal Reserve may need to maintain higher interest rates for longer to combat inflation.
The May jobs report, which showed the US economy adding 272,000 jobs—far surpassing projections—reinforced this notion. Interestingly, the unemployment rate also rose to 4.0%.
Something doesn't add up here:
All of the headlines say that the US economy added 272,000 jobs in May.
However, when you dig deeper into the data you can see that full-time employment actually FELL by -625,000.
Meanwhile, part-time employment rose by 286,000 along with the… pic.twitter.com/77403A2Eyu
— The Kobeissi Letter (@KobeissiLetter) June 7, 2024
In other market news, GameStop (GME) enthusiast Keith Gill, known as “Roaring Kitty,” livestreamed his latest thoughts on the video game retailer, expressing confidence in its leadership.
Despite his optimism, GameStop shares plunged nearly 40%. Meanwhile, Nvidia (NVDA) is set to complete its 10-for-1 stock split. A midweek surge briefly pushed the AI chipmaker’s valuation to $3 trillion, but shares have since declined due to increased short bets.
Looking ahead, investors are keenly anticipating the Federal Reserve’s policy meeting next week. While no rate changes are expected, the release of the “dot plot” will offer insights into how many rate cuts central bankers foresee in the near future.
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