Nasdaq 100, Dow Jones, S&P 500 News: Stocks Set for Weekly Gains Despite Volatile Trading

U.S. Stock Indexes on Track for Weekly Gains

U.S. stock indexes faced a volatile trading session on Friday but remained poised for weekly gains as traders weighed conflicting economic data and anticipated the Federal Reserve’s upcoming policy meeting. The Dow Jones, S&P 500, and Nasdaq are all set for positive weekly performances, with the Nasdaq leading the pack.

At 15:56 GMT, the Dow Jones Industrial Average is trading 38960.32, up 74.15 or +0.19%. The S&P 500 Index is at 5365.94, up 12.98 or +0.24% and the Nasdaq is trading 17200.48, up 27.36 or +0.16%.

Nonfarm Payrolls Beat Expectations

The Labor Department reported a significant increase of 272,000 jobs in May, surpassing expectations. Additionally, average hourly earnings rose more than anticipated. This initially led to a dip in stock prices as traders reduced the likelihood of a September rate cut. However, the market rebounded as other data pointed to potential economic weaknesses. The unemployment rate unexpectedly rose to 4%, and a household survey indicated a 408,000 decline in employment. Revisions for April and March Nonfarm Payroll numbers also showed lower figures than previously reported.

Sector Movements and Notable Stock Performances

Rate-sensitive real estate stocks fell by 0.3%, while financial stocks gained 0.6%, leading sector advancements. The major indexes are set for weekly gains, with the Nasdaq looking at a 2.6% increase, its best week in five. Several stocks made significant moves midday:

GameStop: The video game retailer’s shares plunged over 28% following a poor earnings report, revealing a 29% drop in net sales year-over-year and plans to sell additional stock.

Vail Resorts: Shares fell 12% after the company missed earnings estimates, reporting $9.54 per share on $1.28 billion in revenue, below the expected $9.97 per share and $1.30 billion in revenue.

Oddity Tech: Shares soared 23% after announcing a $150 million share buyback program and raising its second-quarter earnings outlook.

Traders Eye September Rate Reduction

Traders currently see a 56% chance of a rate reduction in September, as per the CME’s FedWatch tool. Next week’s U.S. inflation data, arriving just before the Fed’s two-day policy meeting on June 12, will be crucial. Market participants are looking for insights into the timing and pace of potential rate cuts in the Fed’s updated economic and policy forecasts.

Market Forecast

Despite a stronger-than-expected jobs report, the stock market appears resilient, with the S&P 500 touching a fresh record on Friday. Investors are optimistic that the economy can continue to grow without the need for lower interest rates. The Fed’s decision next week will be closely monitored for any indications of a rate cut in September. Given the mixed economic signals, the market sentiment leans cautiously bullish.