Stock futures opened higher Sunday night, pointing to progress to kick off the week.
May job report burnt a shares rally who sent Nasdaq Composite short of its record high Feb. 19 during Friday’s session. The surge added to a week-long meltdown of stocks as investors saw signs that early moves to reopen businesses brought back some workers and gained momentum in economic activity. “Data-reactid =” 17 “> An unexpectedly strong job in the May report fueled a stock rally that briefly sent the Nasdaq Composite above its record high on February 19 during Friday’s session. The wave added to a week-long melting of shares as investors saw signs of , that early moves to reopen businesses brought back some workers and driving progress in economic activity.
“Non-farm wages unexpectedly rebounded by 2.5mn [million] in May, and the details of the report match a major and genuine rebound in labor market activity, ”Goldman Sachs economists led by Jan Hatzius said in a note. “Unemployment fell from 14.7% in April to 13.3% in May, much lower than expected, although BLS suggested that 16.4% of the workforce remains unemployed after adjusting for a misclassification of workers who were not at work (down from 19.5% in April). “
“Encouragingly on this front, three-quarters of coronary job losers reported being temporarily laid off in May – a positive sign of the strength of the forthcoming labor market recovery,” the economists added. “We expect unemployment to fall further in June.”
discourage lawmakers from injecting additional financial stimulus. Others also noted that the distribution of hundreds of billions of dollars through Congress’s Paycheck Protection Program in May could have led to an exaggeration of the number of workers being permanently put back on payroll, with another wave of layoffs a continuing risk, when program funds run out. “data-reactid =” 20 “> Still, at least some economists noted that the unexpectedly strong labor market rebound, as evidenced by the job report, could discourage lawmakers from injecting additional economic stimulus. Others also noted that the distribution of hundreds billions of dollars through Congress’s paycheck protection program in May could have led to an exaggeration of the number of workers brought back on payroll permanently, with a second wave of layoffs a continuing risk as funds from the program run out.
While market participants are awaiting further data to confirm the recovery, several cities and states that are reopening their economy have so far provided ample fuel for risk values. New York City starts its first phase of reopening on Monday, joining the rest of the state and many other metropolitan areas across the country to bring businesses back online after the mid-March break. Overall, the state reported a 0.2% increase in one day in new cases on Sunday, or the lowest pace in more than two months.
New York City also lifted its curfew Sunday on protests and riots spurred on the killing of George Floyd, and joins Chicago and Philadelphia to ease the city’s extensive measures to curb violence and property destruction as mass rallies wore off. Protests are approaching the two-week mark in many major cities nationwide, with the vast majority of these happening peacefully.
its target range for federal funds rates between 0% and 0.25% and signals politicians ’expectations of keeping interest rates close to zero for the next two years, based on consensus expectations. “data-reactid =” 23 “> Later this week, market participants receive inflationary economic data in the monthly consumer price index and producer price index, as well as the Federal Open Market Committee’s most recent monetary policy decision. , 25% and signal politicians’ expectations of keeping interest rates close to zero for the next two years, based on consensus expectations.
6:02 p.m. ET Sunday: Equity futures are on the rise, increasing last week’s gains
Here were the key features at the start of the US stock futures nightly session from 6 p.m. 6:02. ONE:
S&P 500 futures (ES = F): 3,197.75, up 11 points or 0.35%
Dow futures (YM = F): 26,165.00, up 93 points or 0.34%
Nasdaq futures (NQ = F): 9,834.00, up 25.5 points or 0.26%
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