Stock futures are barely higher ahead of May employment data

Stock futures are barely higher ahead of May employment data

Web Desk
June 3, 2022

Stock futures are barely higher ahead of May employment data

Stock futures are barely higher ahead of May employment data.
The S&P 500 and Nasdaq 100 futures were both up 0.1 percent.
The S&P 500 is up 0.5 percent and on track for its second consecutive good week.
Traders are anticipating the nonfarm payroll report on Friday.

Stock futures gained Thursday evening as investors focused on additional job data due Friday morning.

Dow Jones Industrial Average futures were up approximately 30 points. The S&P 500 and Nasdaq 100 futures were both up 0.1 percent.

All three major indexes ended two-day losing streaks in regular trading Thursday, putting them on track for a profitable week. The Dow Jones Industrial Average rose 435.05 points, or 1.3 percent. The S&P 500 increased by 1.8 percent, while the Nasdaq Composite increased by 2.7 percent.

The advances on Thursday brought the major averages into positive territory for the week. The S&P 500 is up 0.5 percent and on track for its second consecutive good week.

Trading was bumpy at the opening of trading Thursday, with investors divided on recession forecasts and whether the Federal Reserve is about to pause its interest rate hikes. Fed Vice Chair Lael Brainard told CNBC on Thursday that it is unlikely to do so anytime soon and that the Fed “got a lot of work to do to get inflation down to our 2% target.”

Investors were also absorbing employment data issued by ADP earlier in the day, which revealed the slowest job creation rate since the pandemic’s recovery.

However, equities rebounded into the close, finishing around session highs, as investors recognised value in beaten-down tech stocks and other beaten-down names in this year’s decline. Traders are anticipating the nonfarm payroll report on Friday. Though job growth is likely to decelerate in May, economists say the labour market remains solid, even as other parts of the economy have worsened.

“Today’s data also only heightens the focus on Friday’s May payrolls release – particularly on wage growth,” wrote Goldman’s Chris Hussey. “A very strong reading might signal that the Fed has a lot more to do to quell inflationary pressures in the economy, while a big negative surprise – like we saw in ADP today – could support those who think the U.S. is fast slipping into a recession.”

According to a Dow Jones survey, economists expect 328,000 new jobs in May, a 100,000 decrease from April. Wages are expected to climb by 0.4 percent, quicker than the 0.3 percent gain in April, according to consensus projections.

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