Stock market today: US futures slip after jobs report smashes expectations

US stocks moved lower Friday after a jobs report seen as pivotal to expectations for interest-rate cuts showed much stronger hiring growth than expected.

S&P 500 (ES=F) and Dow Jones Industrial Average (YM=F) futures fell around 0.4%, coming off a lackluster session Thursday for the three major gauges. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell around 0.3%.

Stocks are looking for weekly wins after labor market data suggesting a cooldown has reinforced bets that the Federal Reserve could start lowering rates from their two-decade high.

The highly anticipated May jobs report could put a bit of a dent in that narrative. The US economy added 272,000 jobs in May, smashing expectations. However, the unemployment rate did tick higher, rising to 4.0%.

Elsewhere in markets, the wait is also on for a livestream apparently promised by GameStop (GME) booster Keith Gill, aka “Roaring Kitty.” The event, scheduled for noon ET Friday, would be the first live YouTube appearance by Gill since he helped ignite the meme stock rally three years ago.

GameStop shares closed 47% higher on Thursday, but they dropped sharply after the video game retailer said it would sell up to 75 million shares and said sales declined in the first quarter.

Also on deck is the completion of Nvidia’s (NVDA) 10-for-1 stock split, expected after the market closes. A midweek rally briefly vaulted the AI chipmaker to a $3 trillion valuation, but its shares have lost steam as short bets against the company pile up.

Live2 updates

Fri, June 7, 2024 at 7:32 AM EDT
Eyes on Robinhood
Robinhood (HOOD) remains on several impressive streaks.
For one, the stock price: it’s up 27% in the last 30 days. And two, the flow of news — from debuting a new credit card, to reporting a solid first quarter, to spending $200 million yesterday to buy crypto exchange Bitstamp.
“This is a strategic move by HOOD to expand its crypto business, and we believe validates our thesis that HOOD is a great way to seek crypto equity exposure at the commencement of an exciting new crypto cycle,” said Bernstein’s Gautam Chhugani this morning.
I grabbed coffee with Robinhood’s co-founder and CEO Vlad Tenev yesterday afternoon post Bitstamp deal. The guy has his swagger back, but you can tell he has gained a whole new level of experience having gone through what he did several years back — from layoffs to testifying on the GameStop (GME) insanity. Keep an eye on what the company’s does next in wealth management.
Our last chat on Yahoo Finance Live below.
Fri, June 7, 2024 at 7:16 AM EDT
Reminder as you read the jobs report
The market still wants to believe in rate cuts for 2024.
So keep that in mind as you navigate today’s jobs report and plot through how it may influence Fed policy.
Good point by Deutsche Bank’s Jim Reid this morning after the ECB’s rate cut yesterday:
“And even though the tone was a bit hawkish in several respects, it now makes them the fourth G10 central bank to have cut rates, after Canada, Sweden and Switzerland. In turn, the move has cemented the idea that the global monetary policy cycle is moving towards an easing mode, with investors expecting further cuts on the horizon. So it marks a big shift from much of the last couple of years, when central banks were rapidly hiking rates to try to bring down inflation.”

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Eyes on Robinhood

Reminder as you read the jobs report

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