The Market News Today: Investors Await Jobs Report for Fed Insights

Investors Eye May Non-Farm Payrolls Report for Fed Rate Clues

Investors await May’s nonfarm payrolls report for insights on Federal Reserve actions. Economists predict 190,000 job gains and a 0.3% wage increase. Weak private payroll growth and rising unemployment claims hint at economic deceleration. Citi forecasts 140,000 jobs and a 4% unemployment rate, suggesting potential early rate cuts. Goldman Sachs expects 160,000 job gains. The report, crucial for market predictions, will be released at 12:30 GMT.

U.S. Stock Futures Steady Ahead of May Jobs Report

U.S. stock futures remained stable as investors anticipated May’s nonfarm payrolls report. Major indexes are set for weekly gains, with the Dow up 0.52%, S&P 500 rising 1.43%, and Nasdaq advancing 2.62%. Investors seek signs of a weakening labor market, hoping it might prompt Federal Reserve rate cuts. The report follows the European Central Bank’s (ECB) recent rate cut, adding pressure on the Fed, which will announce its rate decision next week.

Extended Trading: Vail Resorts Drops, Braze Surges

In extended trading, Vail Resorts’ stock fell over 5% after missing earnings expectations. DocuSign dropped 4% despite beating earnings and increasing its share repurchase plan. Samsara shares declined nearly 7% even with better-than-expected earnings and revenue. Braze surged 15% on a smaller-than-expected loss and revenue beat. Planet Labs rose 3.8% after reporting a narrower-than-expected loss and slightly higher revenue. These companies saw significant movement following their financial announcements.

Treasury Yields Rise Ahead of Key Labor Market Data

U.S. Treasury yields climbed as investors awaited key labor market data. May’s nonfarm payrolls report, expected to show a 190,000 job increase, follows ADP’s report of 152,000 new jobs, below estimates. Investors are hopeful that signs of a slowing labor market may prompt the Federal Reserve to consider easing monetary policy. The Fed is expected to maintain rates next week, with a potential rate cut anticipated in September. The ECB recently cut rates for the first time since 2019.

Oil and Gold Prices Stabilize Amid Economic and Market Uncertainties

Oil prices rose slightly on Friday due to OPEC+ reassurances but faced a third weekly loss. Analysts expect oil to stabilize between $76 and $80 per barrel. Meanwhile, gold prices held firm, set for their first weekly gain in three weeks, as bets on Federal Reserve rate cuts increased. Lower bond yields and a weaker dollar supported gold. Markets are now eyeing U.S. nonfarm payrolls data for further cues on economic conditions and future rate decisions.