Stock market today: Stocks dip but notch weekly wins after jobs report smashes expectations
How did the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite perform on the Friday mentioned in the article?
On the Friday mentioned in the article, the S&P 500 fell 0.1%, the Dow Jones Industrial Average gave up 0.2%, and the tech-heavy Nasdaq Composite shed about 0.2%. Despite the lackluster Friday session, all three indexes logged wins for the week.
How many jobs were added to the US economy in May, and how did this figure compare to expectations?
In May, the U.S. economy added 272,000 jobs, which exceeded market expectations. Economists had anticipated an increase of 190,000 jobs, according to a Dow Jones survey. This marks a robust month for job growth, despite other indicators showing signs of a slowdown in the employment market. The unemployment rate remained almost unchanged at 4%, while average hourly earnings increased by 0.4%.
What was the impact of the May jobs report on investor expectations regarding interest rate cuts?
The May jobs report had a significant impact on investor expectations regarding interest rate cuts. The report showed that the US economy added 272,000 jobs in May, which was higher than the expected 180,000. This stronger-than-expected jobs growth caused investors to reconsider their expectations for interest rate cuts. Money markets reduced the probability of a September interest rate cut from around 69% to 53% following the release of the jobs report. The strong employment figures also led to a decline in the pound and pushed back expectations for an interest rate cut by the Bank of England. Overall, the May jobs report made it less likely that central banks would cut interest rates in the near term, as the labor market remained strong and inflationary pressures persisted.