Wall Street uncertain, Treasury yields rise with robust labor market

Positive American market doubts about first Fed cut

(Finance) – Il US stock market improves during the session and shows a small increase Despite stronger than expected non-agricultural payroll data signaled that the US labor market remains robust, dimming hopes of interest rate cuts by the Federal Reserve in September. Meanwhile, a sell-off in Treasuries pushed yields up significantly.

Going into the details of the Department of Labor report, theoccupation Non-agricultural jobs increased by 272,000 in May, versus expectations for an increase of 182,000. There average hourly wage rose 0.4% month-on-month, compared to expected growth of 0.3%. The unemployment rate rose to 4% versus a forecast of 3.9%.

It’s one of the last major macroeconomic data Fed officials will see before the meeting next week, when they are expected to keep rates at their highest levels in two decades. The market continues to predict a decline in the cost of moneyin the United States, starting from the 4th quarter this year, despite cautious statements from Fed members.

Meanwhile, yesterday there European Central Bank (ECB) cut official rates by 25 basis points, confirming market forecasts and aligning with what was anticipated by many members of the Board of the same bank in recent weeks; this is the first cut after the long restrictive cycle that began in July 2022. The day before, Wednesday, the Bank of Canada cut rates by 25 basis points.

Among company announcements, GameStop closed the first quarter at a loss of $32 million and announced a potential new share sale, Bain Capital announced the acquisition of PowerSchool in a 5.6 billion dollar operation, Entergy And NextEra Energy have signed an agreement to develop up to 4.5 GW of new solar projects.

Looking at the main indicesWall Street reports a change of +0.14% on Dow Joneswhile, on the contrary, theS&P-500 proceeds in small steps, advancing to 5,366 points. Moderately rising Nasdaq 100 (+0.35%); along the same lines, slightly positiveS&P 100 (+0.36%).

Appreciable rise in the S&P 500 for i compartments financial (+0.64%) e industrial goods (+0.56%). Among the worst performers on the S&P 500 list, the sectors fell the most materials (-0.94%) e utilities (-0.70%).

Among the best Blue Chips of the Dow Jones, 3M (+2.09%), Nike (+1.89%), Travelers Company (+1.89%) e JP Morgan (+1.76%).

The worst performances, however, are recorded on Wal-Martwhich obtains -1.83%. United Health drops by 1.59%. He hesitates Home Depot, which lost 1.25%. Basically weak McDonald’swhich recorded a decline of 1.02%.

On the podium of Nasdaq stocks, Adobe Systems (+1.88%), Automatic Data Processing (+1.79%), Palo Alto Networks (+1.65%) e CrowdStrike Holdings (+1.38%).

The steepest declines, however, occur at Sirius XM Radio, which continues the session with -2.51%. Decline decided for Biogen, which marks -2.34%. It moves below parity Modern, highlighting a decrease of 1.46%. Moderate contraction for Constellation Energywhich suffers a decline of 1.42%.

tlb-finance