Stock Rally Pauses Ahead of US Employment Data – US Market Wrap

Stocks and bonds fell ahead of a key US jobs report, which will help shape the Federal Reserve’s next steps.

Equities remained near all-time highs as traders avoided large bets ahead of the data. According to a 22V Research survey, there is no consensus on the market reaction, with 36% expecting a “risk-off” move, 33% expecting a “risk-on” move, and 31% expecting “negligible/mixed.” Treasuries fluctuated. The euro rose after the European Central Bank raised its inflation forecasts following its rate cut.

In the run-up to the payrolls report, Wall Street waded through a slew of data. Jobless claims exceeded expectations, labour costs rose less than previously reported, and the trade deficit expanded. Friday’s report is expected to show that the US added 180,000 jobs in May, while the unemployment rate remained unchanged.

The S&P 500 was little changed after setting its 25th record in 2024. According to people familiar with the matter, the United States is opening antitrust investigations into Microsoft and Nvidia due to their dominance in artificial intelligence.

Keith Gill, also known as “Roaring Kitty,” scheduled a YouTube live stream for June 7th at 12 PM in New York, which boosted GameStop.

US 10-year yields fluctuated around 4.29%. Swap markets continued to price in the start of the Fed rating cut in November, with a strong possibility of another cut in December.