Jobs
US equities open lower on May jobs report
US equities (^GSPC, ^DJI, ^IXIC) opened lower Friday morning after the May jobs report revealed 272,000 nonfarm jobs were added to the US economy. The reading was hotter than Wall Street expected, raising concerns about future policy decisions from the Federal Reserve.
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This post was written by Nicholas Jacobino
Video Transcript
Got some declines across the board after this hotter than expected inflation print investors not happy that this could signal FO MC that decides to push out those rate cuts.
Yeah, it is a bit worrisome here at least for the street.
That’s how the street is looking at this.
Obviously a hotter than expected inflation or a hotter than expected.
Excuse me, jobs for pointing to a strong us economy in the market though viewing that as a negative just in terms of that timing for that first rate cut.
When you take a look at those expectations, those are now being pushed out beyond the summer.
So again, we see that reflected in the major averages, you’ve got the dow now off just around 91 points, you’ve got the S and P off about 3/10 of a percent.
But a lot of the action coming in the bond market here today, we’ve got this boost in yields.
You got the 10 year yield now at 441 up 13 basis points of this dramatic move higher.
Also the two year really moving here on the heels of this print and then also breaking it down by sector action, we’re seeing red across the board in terms of the worst performers, real estate materials, the utilities here you got real estate off just about 1.6%.
Not exactly a huge surprise given the uh the dynamics of the market right now.
And also real quick, let’s take a look at the NASDAQ and take a look at NVIDIA.
You’re looking at NVIDIA opening off just around 1.7%.
So again, take a look at this, not only because it crossed that three trillion in valuation, but also ahead of the stock split 10 for one stock split that’s going to take effect after the market closed today.