- The week had Dow Jones dropping -0.94, Nasdaq -0.98, and S&P 500 -1.2%.
- The United States added around 390K jobs during the previous month.
- The unemployment rate stayed unmoved at 3.6%.
Wall Street saw its three primary indexes weakening last week, even with the US job market confirming the economy was on stable footing. The United States announced non-farm payrolls surging beyond expectations in May.
The US declared the Non-Farm Payrolls reports on 3rd May. The report indicated that the United States added over 390K jobs in May. Meanwhile, the figure exceeded May’s estimate of $325K jobs. Nevertheless, potential rate hikes in the coming months have investor mood within the negative territory.
Also, the report indicated steady wage increases last month, portraying a continued expansion narrative for the US economy, though moderately. OANDA market analyst Ed Moya stated that cooler wager and softer hiring data indicate moderate economic growth but not enough to confirm a stance shift by Fed.
Meanwhile, the unemployment rate stayed at 3.6%, an encouraging thing, albeit not sure if the same will maintain. Multiple financial organizations have downwardly evaluated the United States’ economic growth. Wells Fargo and JPMorgan believe the economy will grow slower than previous estimates.
Fed Chair Jerome Powell stated that risk-aversion perseveres, and inflation and growth data become more bothersome. Moreover, tensions between western nations and Russia continue to affect financial markets.
The US Fed increased rates by 50 basis points in May. Remember, it has never down such a move in more than twenty years. Moreover, market players expect another 50bp hike during Fed’s meeting in June and July.
S&P 500 -1.2% Weekly Drop
The past seven days saw S & P 500 losing -1.2, closing at 4,108 pts. Upward moves remain restricted for the coming week, amid prices falling beneath 4,000 pts will mean a ‘sell’ signal.
Dow Jones on -0.94% Weekly Loss
The past seven days had DJIA losing 0.94% to close the week near 32,899 pts. The support levels stood at 32,000 pts, and declines beneath the barrier will mean hitting 31,500 pts. An upsurge past 33,500pts would reveal the 34,000 resistance as the next target.
NASDAQ Composite 0.98% Down
COMP lost 0.98% within the past week, closing at 12,012pts. Nasdaq Composite’s upside remains limited as Fed plans more policy tightening to curb escalated inflation.
Nasdaq, S&P 500, and Dow Jones ended the previous week with lows even with the United States job market confirming a steady economy. The nation added 390K jobs within the past month, but Fed’s potential rate increases have investor mood deteriorating.