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Stock Market News

Our market analysts keep you updated on the latest market trends including stock market data, news, market activity, and economic reports in the daily stock market commentary.

Opening | Closing

Closing Comment — Friday, June 02, 2023

DJIA: 33,762.76, up 701.19
S&P 500: 4,282.37, up 61.35
NASDAQ: 13,240.77, up 139.79

Stocks surge on jobs and debt-ceiling deal

U.S. equity markets rallied on Friday as investors celebrated a strong May jobs report and the U.S. Senate’s (with a 63-36 majority vote) passing of debt-ceiling legislation, averting a default. The bill is now headed to the White House to be signed into law. Bond yields also rose on Friday’s robust payroll figures. On the data front today, non-farm payrolls added 339,000 new jobs in May, exceeding the consensus forecast of 195,000. Upward revisions for March and April underscored May’s stronger-than-anticipated data. The unemployment rate ticked up last month to 3.7% from 3.4% in April, exceeding consensus expectations. Meanwhile, the labor force participation rate was unchanged in May at 62.6%, matching expectations. Today, the Dow surged by 701 points (2.1%) while the Nasdaq Composite climbed 1.1% for its sixth consecutive week of gains. The S&P 500 increased 1.5% with all 11 sectors finishing in positive territory.

Treasury yields across the yield curve moved higher. The yield on the benchmark 10-year note rose by nine basis points (0.09%) to 3.69%, while the 30-year bond yield increased by six basis points (0.06%) to 3.88%. The yield on the two-year note jumped by 16 basis points (0.16%) to 4.50%. In commodities, West Texas Intermediate (WTI) crude advanced 2.7% to $71.98/barrel following news that the U.S. Congress passed a debt-ceiling deal ahead of the Organization of Petroleum Exporting Countries and their allies (OPEC+) meeting this weekend.

Opening Comment — Friday, June 02, 2023

DJIA: 33,061.57, up 153.30
S&P 500: 4,221.02, up 41.19
NASDAQ: 13,100.98, up 165.69

Stocks higher on passage of debt ceiling bill

U.S. equity futures are slightly higher Friday after the debt-ceiling deal passed its last Congressional hurdle, with traders now looking to U.S. jobs data later today that may clarify the Federal Reserve’s (Fed) policy path. This morning, the Dow is up 0.5% in pre-market trading, while the S&P 500 is 0.5% higher. The Nasdaq 100 is trading 0.5% above fair value on the GLOBEX.

U.S. equities finished higher on Thursday led by strength of technology companies and optimism on a debt ceiling suspension. Bond yields fell ahead of Friday’s job reports and a Fed speaker indicating a possibility to pause interest rate hikes in the upcoming June meeting. On the data front, initial jobless claims and continuing claims both rose less than expected. The May Institute for Supply Management (ISM) Manufacturing data came in weaker than expected as well showing signs of the economy slowing. Yesterday, the Dow increased 153 points (0.5%) while the Nasdaq Composite climbed 1.3%. The S&P 500 increased 1.0% with nine of 11 sectors finishing in positive territory.

On the data front today, On the data front today, non-farm payrolls increased by 339,000 in May versus the revised 294,000 in April, exceeding the consensus forecast of 195,000. The unemployment rate ticked up to 3.7% from 3.4% in April, exceeding consensus expectations. Meanwhile, the labor force participation rate was unchanged in May at 62.6%, matching expectations.

Over in the commodity pits, West Texas Intermediate (WTI) crude is up 1.63% to $71.24/barrel after the U.S. averted a debt default and ahead of this weekend’s Organization of Petroleum Exporting Countries (OPEC) meeting. In the metals complex, gold is up slightly at $1980.50/ounce.

Across the pond, European stocks are climbing in mid-day trading after U.S. lawmakers passed a bill to raise the debt ceiling and cap government spending for two years. Overnight in Asia, shares in Japan, Australia, and China advanced while South Korea’s Kospi index was headed for bull market territory following a gain of more than 20% from a low in September. Hong Kong’s Hang Seng index rose more than 4%, pulling the benchmark back from the brink of a bear market following concerns about Chinese growth. China is working on a new basket of measures to support the property market after existing policies failed to sustain a rebound in the ailing sector. In FOREX trading, the U.S. dollar declined on Friday against a basket of major currencies as traders anticipate a Fed pause.

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