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03/06/24
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Stocks On Wall Street Mixed to Start June Trading as Markets Await Jobs Report
On Monday, stocks on Wall Street opened mixed to start a new month of trading, after the three major Wall Street indices recorded strong gains in May.
The Dow Jones Industrial Average dipped by 25 points or 0.1%, the Nasdaq Composite gained 156 points or 0.9%, and the S&P 500 rose by 17 points or 0.3%.
On Friday, indices on Wall Street soared after personal consumption expenditures price index data for April, the Fed’s preferred inflation measure, matched expectations.
The PCE reading showed inflation cooled slightly, although it was still much higher than the Fed’s annual inflation target of 2%.
The data, together with other recent indicators of the U.S. economy easing, however resulted in some bets that the central bank will start cutting interest rates in Sept.
According to the CME Fedwatch tool, traders were pricing in an about 47% probability for a 0.25% cut in Sept., together with an about 45% likelihood that the Fed will hold. This positioning helped to bolster U.S. stocks.
Market participants will now turn their focus to nonfarm payrolls data for May, due later in the week, which may offer more clues on the labor market — another key factor for the Fed in reducing interest rates.
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