Last updated: 4:05PM EST
Stock indices finished today’s trading session in the red as stocks lost all momentum heading into the close. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.35%, 0.29%, and 0.55%, respectively.
The consumer staples sector (XLP) was the session’s laggard, as it fell 1.32%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 2.23%.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.06%, whereas the Two-Year Treasury yield decreased and now hovers around 4.94%.
Compared to yesterday, the market appears to have more conviction about the Federal Reserve keeping interest rates between 5.25% and 5%. Indeed, the probability increased to 51.6% at the time of writing, with the current range of 5% to 5.25% seeing a slight tick up as well to 10.9%.
Last updated: 1:00PM EST
Stocks are in the green at the time of writing as the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.6%, 0.5%, and 0.2%, respectively. A recent Bankrate survey reveals that a striking 72% of Americans feel financially insecure, mainly attributing this to high inflation, an uncertain economy, and inadequate emergency savings.
To feel financially stable, U.S. adults reported needing an average annual income of $233,000 and roughly $483,000 to feel rich and attain financial independence. These figures stand in stark contrast to the median full-time worker’s earnings of $56,473 two years ago, according to the U.S. Census Bureau.
Furthermore, the survey also showed that escalating interest rates were listed as the fifth primary reason for feeling financially insecure.
Last updated: 9:30AM EST
Stocks opened mixed to end the week as the Nasdaq 100 (NDX) gained by 0.1% while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are down 0.04% and 0.1%, respectively, at 9:30 a.m., EST, July 7.
In one of the first signs of weakness in the jobs market, the U.S. labor market created 209,000 new jobs in June. This was the smallest rise in jobs in more than two and a half years, indicating that the labor market is cooling down as interest rates continue to rise. This increase in jobs was lower than economists’ forecast of the addition of 240,000 jobs. Meanwhile, the unemployment rate slid to 3.6% from 3.7%.
According to the CME FedWatch tool, futures traders are pricing in a 92.4% probability that the Fed will raise the benchmark interest rate by 25 basis points to a range of 5.25% to 5.5% later this month. Traders expect that there is less probability of a 25 basis points hike in interest rates in September or November as the June jobs data showed signs of a weakening labor market.
First published: 4:30AM EST
U.S. Futures are trending lower in the wee hours of Friday morning, following the robust ADP nonfarm employment report on Thursday. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.25%, 0.16%, and 0.14%, respectively, at 4:30 a.m., EST, July 7. On the other hand, WTI crude oil continues to trend higher today following the latest oil output cuts and is trading above $72 as of the last check.
Traders await the June Payrolls data due today to gauge how the strength in the labor market could push the Fed to increase rates more aggressively in the future. The expectation for June is that payrolls increased by another 240,000 and that the unemployment rate will come in lower at 3.6%. Meanwhile, U.S. Treasury Secretary Janet Yellen is on a four-day trip to China, where she will discuss the ongoing trade war between the two nations and measures for skirting the issues.
Remarkably, major indexes closed Thursday in the red zone following the ADP jobs report that showed private companies added a whopping 497,000 jobs in June as against expectations of 220,000 jobs. The three averages are set to finish the week on a negative footing, snapping the multi-week gains witnessed in June.
Further, shares of Levi Strauss (NYSE:LEVI) lost over 7% in after-hours trading yesterday after the company posted upbeat earnings for Q2FY23 but lowered expectations for Fiscal 2023. Meta Platforms (NASDAQ: META) newly launched “text-based conversation app,” Threads, is making waves in the social media circle, with 30 million users already signing up for the app since its launch.
Elsewhere, European indices are trading in the red this morning, following the major sell-off in U.S. markets triggered by the news of stronger-than-expected U.S. jobs data.
Asia-Pacific Markets End Lower on Friday
Asia-Pacific indices ended the trading session lower on Friday, following a similar sentiment as their U.S. counterparts. Traders are cautious about the soon-coming higher interest rate hikes in the U.S.
In the meantime, shares of Chinese e-commerce giant Alibaba (NYSE:BABA) are up nearly 3% in pre-market trading as of the last check. Chinese authorities are most likely looking to end the long-standing regulatory revamp of BABA’s fintech arm, Ant Group, today by imposing a hefty fine of $1.1 billion. The end of scrutiny will mean Ant Group can pursue its public listing ambitions.
Hong Kong’s Hang Seng and China’s Shanghai Composite and Shenzhen Component indexes ended lower by 0.90%, 0.28%, and 0.73%, respectively.
Similarly, Japan’s Nikkei and Topix indices finished down by 1.17% and 0.97%, respectively.
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