The S&P 500 May Not Clinch 10 Consecutive Weeks of Gains
The S&P 500 fell this week for several days and might not make it to 10 consecutive weeks of gains.
Quick overview
- The S&P 500 experienced a 0.5% decline in premarket trading, ending a nine-week winning streak.
- The May jobs report revealed that 172,000 jobs were added, significantly exceeding economists' predictions.
- Tech stocks faced losses, with Broadcom dropping 13% and other major companies like Intel and AMD losing between 1.5% and 3%.
- Oil prices remained low, with Brent crude at $94.65 per barrel, as investors hope for continued declines following a ceasefire agreement.
After two days of losses, the S&P 500 dipped again in premarket trading Friday, and the index might not be able to keep up its lengthy winning streak that has already extended for nine weeks.
Stock market futures were down Friday morning in the United States, and the S&P 500 fell 0.5% while the Nasdaq Composite lost 1.1% The Dow Jones Industrial Average, on the other hand, moved upward by 0.2%. Tech stocks continued to drop, halting a strong rally that was carried by excellent AI market sentiment.
Broadcom (AVGO) was one of the biggest losers on Thursday, falling 13% at one point. Major tech stocks Marvell Technology (MRVL), Micron Technology (MU), Intel (INTC) and Advanced Micro Devices (AMD) all lost between 1.5% and 3% on Thursday, indicating market correction and also loss of momentum for the recent rally
May Jobs Report Catches Market’s Attention
The jobs report for May released on Friday and showed that 172,000 jobs were added by U.S. employees. That figure is more than two times higher than what economists predicted, and it is excellent news for the market. Even though stocks are slightly down for today, they may jump before the end of day Friday.
Currently, unemployment is around 4.3%, which is steady from the previous month. That level is relatively low, and that is further great news for the market that indicates some economic improvement in the wake of negative inflation news.
Investors will also be watching oil prices, which are still low compared to last week since they fell around 3% on Thursday. This morning, they moved little, and there is hope that the price of oil globally will continue to fall after Israel and Lebanon reiterated their ceasefire agreement. Brent crude is now at $94.65 per barrel while the benchmark West Texas Intermediate oil price is at $92 per barrel.
The jobs report released before the stock market opened across the United States, so the effect could be tremendous as the morning session begins. With the numbers looking much better than expected, investors may want to take advantage of the sudden positive news and strike before the effects fully trickle down.
Most of the major market movers already reported their quarterly earnings for this season, but a few notable businesses released their earnings this week ABM (ABM) reported earnings this week and set a record with second quarter revenue of $2.3 billion. The company was able to reiterate its outlook for the rest of the year and enjoyed an 8.4% bump in revenue for the quarter.
Lululemon (LULU) was not as fortunate this week, with earnings reported on Thursday that required the company to decrease the profit and revenue outlook for 2026. Their revenue fell 1%, and the company lowered their expectations from $11.15 billion for 2026 revenue to $11 billion even.
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