U.S. stocks fell Friday after a jobs report seen as key to expectations of lower interest rates showed much stronger hiring growth than expected.
The S&P 500 (^GSPC) fell 0.3%, while the Dow Jones Industrial Average (^DJI) lost 0.2%, after a lackluster session Thursday for all three major indicators. The tech-heavy Nasdaq Composite (^IXIC) fell about 0.4%.
Investors bid up stocks, hoping new data would suggest an economic slowdown. But the Labor Department report provided more evidence that parts of the economy are too hot for the central bank to fight inflation, fueling talk that interest rates would be kept at lower levels for longer. high levels.
May’s highly anticipated jobs report reinforced the view that falling rates from their two-decade highs likely won’t happen until the fall.
The U.S. economy added 272,000 jobs in May, beating expectations. However, the unemployment rate increased slightly, reaching 4.0%.
Learn more: How does the labor market affect inflation?
Elsewhere in the markets, we’re also awaiting a livestream apparently promised by GameStop (GME) booster Keith Gill, aka “Roaring Kitty.” The event, scheduled for Friday at noon ET, would be Gill’s first live appearance on YouTube since he helped spark the meme stock rally three years ago.
GameStop shares closed up 47% on Thursday, but fell sharply after the video game retailer announced it would sell up to 75 million shares and said its sales declined in the first quarter .
The completion of Nvidia’s (NVDA) 10-for-1 stock split, expected after the market close, is also on the cards. A midweek rally briefly propelled the AI chipmaker to a $3 trillion valuation, but its shares have lost steam as short bets against the company pile up.
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