Last Updated: 4:25 PM EST
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
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 1.02%, 0.55%, and 0.17%, respectively. Earlier today, the Bureau of Labor Statistics released its U.S. Nonfarm Payrolls report. In June, employers added 206,000 jobs compared to May’s revised gain of 218,000, which was above the 200,000 jobs economists had anticipated. Interestingly, though, the unemployment rate increased to 4.1% from 4% in the previous month.
Furthermore, in its report to Congress, the Federal Reserve reported that inflation is easing, and the job market has returned to a “tight but not overheated” state similar to before the COVID-19 pandemic. The Fed mentioned that things are getting back to normal, and it expects housing prices to settle down soon.
In addition, the job market has been balancing out this year, with fewer job openings and more people looking for work, which is partly due to strong immigration. There is also a good balance between job demand and supply, and wage growth is slowing down.
All these points taken together 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 from 58% one week ago to over 71% today, according to the CME FedWatch Tool.
First Published: 3:31 AM EST
U.S. futures were near the flatline on Friday morning as investors looked ahead to the release of a crucial jobs report. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.19%, 0.13%, and 0.15%, respectively, at 3:02 a.m. EST, July 5.
All the major indices are set to finish the holiday-shortened trading week in the green. So far this week, the Nasdaq Composite, the S&P 500, and the Dow Jones have gained 2.5%, 1%, and 0.5%, respectively.
In today’s economic reports calendar, investors are awaiting the release of last month’s Nonfarm Payrolls and Unemployment Rate data points. Economists expect nonfarm payroll to increase by 200,000 jobs in June and the unemployment rate to hold steady at 4%.
This report will be closely analyzed by investors, as recent economic data suggests a potential slowdown. The focus lies on how this information might influence the Federal Reserve’s future monetary policy decisions.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.35% at the time of writing. Also, the WTI crude oil futures are trending lower, hovering near $83.68 per barrel as of the last check.
Elsewhere, European markets are expected to open higher today ahead of the results of the U.K.’s general election.
Asia Pacific Markets Traded Lower on Friday
Most of the Asia-Pacific markets traded in the red today. Investors held a cautious stance ahead of China’s June Consumer and Producer Price Index reports next week. These reports will provide insights into inflationary pressures in the economy.
At the time of writing, Hong Kong’s Hang Seng index and China’s Shanghai Composite index were down 0.95% and 0.26%, respectively. At the same time, Japan’s Nikkei and Topix indices dropped 0.003% and 0.49%, respectively. However, China’s Shenzhen Component Index traded higher by 0.27%.
Interested in more economic insights? Tune in to our LIVE webinar.
