Last Updated: 4:10 PM EST
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Stock indices finished today’s trading session in the green after U.S. job growth experienced a slowdown in April. In fact, employers added 175,000 jobs compared to March’s gain of over 300,000, which was below the 240,000 jobs economists had anticipated. Furthermore, the unemployment rate increased to 3.9% from 3.8% in March.
This sparked optimism among investors because it could potentially sway the Federal Reserve to cut interest rates sooner. Indeed, the market-implied probability of a rate cut in September increased to almost 70%. As a result, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.99%, 1.26%, and 1.18%, respectively.
Furthermore, the Institute for Supply Management released its monthly report for the ISM Non-Manufacturing Purchasing Managers’ Index, which measures the overall economic condition of the non-manufacturing sector. A number over 50 represents an expansion, whereas anything below 50 signals a contraction. The report came in at 49.4, lower than the expected 52 and lower than last month’s reading of 51.4.
First Published: 2:44 AM EST
U.S. futures were higher on Friday morning as investors awaited the release of April’s job report. Meanwhile, the U.S. Federal Reserve’s recent decision to maintain steady interest rates has added to the positives, suggesting that the rates may have peaked and could decline in the upcoming months. The futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.51%, 0.23%, and 0.61%, respectively, at 2.28 a.m. EST, May 3.
In after-hours action, shares of the iPhone maker Apple (AAPL) were up over 6% after the company delivered better-than-expected second-quarter financials, announced a massive $110 billion buyback plan, and increased its quarterly dividend by 4% to $0.25 per share. Moreover, Block (SQ) stock increased 7.8% after the company crushed Street’s Q1 earnings forecast. Conversely, Cloudflare (NET) dropped over 14% as the company’s management provided conservative Q2 guidance.
On the earnings front, Hershey (HSY), Cboe Global Markets (CBOE), Cheniere Energy (LNG), and TC Energy (TRP) are prominent companies that will release their quarterly financials today.
Turning to the economic data, April’s jobs report, a crucial gauge of economic well-being, is due today.
In the mean time, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.6%. At the same time, WTI crude oil futures trended higher, hovering near $79.19 per barrel as of the last check.
In Europe, markets could open flat as traders respond to corporate earnings reports and the U.S. Federal Reserve’s recent decision.
Asia-Pacific Markets’ Trading Volumes Were Light
Trading volumes in the Asia-Pacific markets were light as financial markets in China and Japan were closed due to public holidays.
Meanwhile, the Hong Kong Stock Exchange was up 1.31% at the time of writing.
Interested in more economic insights? Tune in to our LIVE webinar.
