Last Updated: 4:10 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.13%, 1.03%, and 0.46%, respectively. The real estate sector (XLRE) was the session’s laggard, as it only gained 0.03%. Conversely, the communication sector (XLC) was the session’s leader, with a gain of 1.34%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 4.49% as investors have begun pricing in the possibility of rate cuts. Indeed, the market is pricing in a 48% chance of a rate cut in September 2024. For reference, the market-implied probability was 44% last week.
First Published: 4:17 AM EST
The U.S. futures nudged higher on Monday morning, buoyed by investors’ optimism over potential rate cuts after the softer-than-anticipated U.S. jobs report. The futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.07%, 0.12%, and 0.1%, respectively, at 3.35 a.m. EST, May 6.
In the latest jobs report, nonfarm payrolls increased by 175,000, falling short of the Dow Jones consensus estimate of 240,000. The unemployment rate edged up to 3.9%, contrary to expectations of it remaining steady at 3.8%. This raised expectations of rate cuts in the near future.
Turning to this week’s economic reports, the first one on the agenda is March’s Consumer Credit Change data, set for release on Tuesday. Analysts and investors keenly watch this data as it reflects consumer credit usage, which correlates strongly with consumer confidence and spending patterns. Later in the week, the focus will shift to May’s preliminary readings of the Michigan Consumer Sentiment Index and the UoM 5-year Consumer Inflation Expectations, both due on Friday.
On the earnings front, Lucid (LCID), Palantir (PLTR), Walt Disney (DIS), Uber (UBER), Shopify (SHOP), SoundHound (SOUN), and Enbridge (ENB), among others, will announce results this week.
Meanwhile, the U.S. 10-year treasury yield was roughly flat at the time of writing, floating near 4.5%. At the same time, WTI crude oil futures trended higher, hovering near $78.76 per barrel as of the last check.
Elsewhere, European indices opened higher as traders evaluated the likelihood of rate cuts following the weaker-than-anticipated U.S. employment number.
Asia-Pacific Markets Were Higher Today
Asia-Pacific indices were higher on Monday amid light trading volumes. Financial markets in Japan were closed due to public holidays.
China’s Shanghai Composite and Shenzhen Component indices rose by 1.16% and 2%, respectively. At the same time, Hong Kong’s Hang Seng index was up 0.47%.
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