Key Points:
- US Stock Futures: Minor fluctuations; Dow up 0.05%, Nasdaq up <0.1%, S&P 500 flat.
- Nonfarm Payrolls: Anticipated 190,000 job additions and 3.9% wage growth.
- Ed Clissold’s Insights: Positive outlook, Q2 earnings growth expected, no immediate recession.
On Thursday, US stock market futures exhibited minor fluctuations. The Dow Jones Industrial Average futures rose by 20 points, equating to a 0.05% increase. Similarly, the Nasdaq 100 futures showed marginal improvement, climbing by less than 0.1%. Meanwhile, the S&P 500 futures remained near the flatline, indicating a day of tentative trading.
Stock Futures Performance: Dow Up 0.20%, Nasdaq Down 0.09%
During regular trading hours on Thursday, the Dow Jones Industrial Average gained 78.84 points, a 0.20% increase, highlighting a positive sentiment among investors. In contrast, the S&P 500 experienced a slight decline of 0.02%, and the Nasdaq Composite fell by 0.09%. This mixed performance reflects varying investor reactions to market conditions, with some sectors experiencing gains while others faced slight downturns.
Nasdaq Stocks Lead Weekly Gains with 2.62% Increase.
Over the past week, the Dow Jones Industrial Average recorded a 0.52% increase, underscoring a steady upward trend. The S&P 500 outperformed with a 1.43% rise, while the Nasdaq led the gains with a 2.62% increase. These weekly performances indicate a robust market environment driven by strong earnings reports and positive economic indicators. Investors appear confident in the market’s ability to maintain its momentum.
Nonfarm Payrolls Report Expected to Add 190,000 Jobs
Investors eagerly anticipate the Nonfarm Payrolls report, scheduled for release on Friday at 8:30 a.m. ET. This report is expected to show an addition of 190,000 jobs alongside a year-over-year wage growth of 3.9%. The labour market’s performance is a key indicator of economic health. This data will, therefore, offer insights into the broader economic outlook. Strong job growth and wage increases could bolster consumer spending and support market gains.
Positive Q2 Earnings Expected, Bull Market to Continue
Ed Clissold, Chief U.S. Strategist for Ned Davis Research, shared his positive outlook on CNBC’s “Closing Bell” for the year. Clissold noted that over 80% of companies surpassed earnings estimates in Q1, and he expects Q2 earnings growth to accelerate. Despite anticipating an economic slowdown, Clissold does not foresee an immediate recession. He also mentioned that the excessive optimism from March has subsided, which he views as a healthy correction. Clissold remains bullish on the market, predicting the continuation of the bull market unless proven otherwise.
ECB’s Rate Cut Pressures Fed, 70% Chance of Rate Easing
The European Central Bank (ECB) recently implemented its first rate cut since 2019, adding pressure on the Federal Reserve ahead of next week’s policy meeting. The Fed Funds futures currently indicate that rates are expected to remain steady. However, there is a significant probability (~70%) of easing by September, according to the CME FedWatch Tool.
