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Today's Stock Market Update: Stocks Slip Slightly Despite Strong Jobs Report, Still Record Weekly Gains

Karen Friar yahoo

Jun 7, 2024

How does the labor market affect inflation?

US stocks wobbled on Friday, after a jobs report seen as pivotal to expectations for interest-rate cuts showed much stronger hiring growth than expected.

The S&P 500 (^GSPC) fell 0.1%, while the Dow Jones Industrial Average (^DJI) gave up 0.2%, coming off a lackluster session Thursday for the three major gauges. The tech-heavy Nasdaq Composite (^IXIC) shed about 0.2%.

Despite the lackluster Friday session, all three indexes logged wins for the week.

Investors have lifted stocks on the expectation that further data will reveal more evidence of an economic cooldown. But the Labor Department report offered another signal that parts of the economy are too hot for the central bank's fight against inflation, feeding into a narrative of keeping rates higher for longer.

The highly anticipated May jobs report reinforced the idea that pulling back rates from their two-decade high likely won't come until the Fall.

The US economy added 272,000 jobs in May, smashing expectations. However, the unemployment rate did tick higher, rising to 4.0%.

Read more: How does the labor market affect inflation?

Elsewhere in markets, GameStop (GME) booster Keith Gill, aka "Roaring Kitty," live streamed his latest thinking on the video game retailer, saying that he believes in the leadership of the company.

Gill confirmed that his positions in GameStop are his and that he is not working with institutional investors. The event marked his first live YouTube appearance since he helped ignite the meme stock rally three years ago. But his e

vent wasn't enough to send the stock in a positive direction. GameStop shares closed down nearly 40%.

The completion of Nvidia's (NVDA) 10-for-1 stock split is expected after the market closes. A midweek rally briefly vaulted the AI chipmaker to a $3 trillion valuation, but its shares have lost steam as short bets against the company pile up.

Investors will be eyeing the results of the Fed's policy meeting next week. While the market expects no rate change announcements after the June huddle, the release of the "dot plot" will indicate how many rate cuts central bankers predict will come in the months and years ahead.

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