Stocks experienced a slight decline on Friday following a day of volatile trading, with investors closely analyzing a robust May jobs report. The Dow dropped by 87 points, or 0.2%, while the S&P 500 and Nasdaq Composite both saw decreases of 0.1% and 0.2%, respectively. Despite this, all three major indexes recorded gains for the week.
In May, the economy added 272,000 jobs, surpassing expectations of 180,000 new positions. The unemployment rate inched up to 4%, and there was a notable increase in wage growth for the first time in several months, as reported by the Bureau of Labor Statistics.
Investor sentiment was mixed in response to the jobs report, leading to fluctuations in the stock market. While the strong job gains indicate that the US economy is unlikely to enter a recession, it also suggests that the Federal Reserve may not implement interest rate cuts in the near future. The central bank is scheduled to convene next week for its June policy meeting.
Market traders are currently factoring in the possibility of one to two rate cuts within the year, according to the CME FedWatch Tool. Some analysts, such as John Kerschner, a portfolio manager at Janus Henderson Investors, believe that while the Fed may be inclined to reduce rates this year, an actual cut is improbable before September at the earliest.
As trading activities settle after the market close, there may be slight adjustments to the levels of various stocks.
