US stocks fell on Friday after the jobs report, which is central to expectations of interest rate cuts, showed much stronger employment growth than expected.
The S&P 500 (^GSPC) fell 0.3%, while the Dow Jones Industrial Average (^DJI) fell 0.2%, after a lackluster session Thursday for the three major gauges. The Nasdaq Composite (^IXIC) fell nearly 0.4%.
Investors lifted stocks on hopes that more data would indicate an economic slowdown. But the Labor Department report provided more evidence that parts of the economy are too hot for the central bank’s fight against inflation, fueling the idea of keeping interest rates higher for longer.
The upcoming May jobs report reinforced the idea that interest rates falling from two-decade highs likely won’t happen until the fall.
The US economy added 272,000 jobs in May, exceeding expectations. However, the unemployment rate rose, rising to 4.0%.
Read more: How does the labor market affect inflation?
Elsewhere in the markets, there is also a wait for the live streaming promised by GameStop (GME) backer Keith Gill, also known as “Roaring Kitty.” The event, scheduled for noon ET on Friday, will be Gill’s first live appearance on YouTube since he helped ignite a meme stock rally three years ago.
GameStop shares closed up 47% on Thursday, but fell sharply after the video game retailer said it would sell up to 75 million shares and said sales declined in the first quarter.
Nvidia’s (NVDA) 10-for-1 stock split is also expected to be finalized, expected after the market close. A midweek rally briefly pushed the artificial intelligence chip maker to a $3 trillion valuation, but its shares lost ground as short bets piled up against the company.
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