The main Wall Street indices rose this Tuesday in a highly volatile wheel, as investors awaited a series of key readings on the American labor marketas well as possible interest rate cuts in Europe and Canada during this week.
He Dow Jones Industrial Average ended in 33,711.29 points, climbing 0.4%; he S&P 500 was located in the 5,291.34 points after gaining 0.2% and the Nasdaq Composite 0.2% appreciated and reached 16,857.05 points.
Wall Street: expectant investors ahead of key payrolls release
The data of the purchasing managers index of May showed that the manufacturing activity slowed for the second consecutive month, and the reading came just days after the United States GDP data were revised downwards in the first quarter.
This weakness caused the Investors will increase bets that the Federal Reserve will begin cutting interest rates in Septemberespecially after last Friday’s inflation reports showed signs of stabilization.
The focus for the rest of this week will be on Friday’s key nonfarm payrolls data.with the labor market being another important consideration for the Federal Reserve when it comes to cut rates. The report is expected to show that the market remained strong again in May, with 185,000 jobs added, a moderate rebound from the previous month.
Investors worried that too strong an economy could prevent the U.S. Federal Reserve from lowering rates this year or could even require a rate hike.. Those concerns were eased last month, but also temporarily, after data showed a inflation slowdown and a cooling of the labor market.
A precursor to Friday’s post will be seen late Tuesday, in the form of the JOLTS job offers (monthly survey that analyzes the US labor market and measures job offers, turnover and other data).
The Federal Reserve will meet on June 11 and 12 and could feel some pressure, due to expected rate cuts from the European Central Bank and the Bank of Canada later this week.
Treasury yields fell on rising hopes for a rate cut this year, with the 10-year bond yield trading 5 basis points lower at 4.346%.
Wall Street: GameStop and Tesla disenchanted
In the business sector, the actions of GameStop They were down 3.5% in a volatile session, following a strong rally earlier, “after stock market influencer Keith Gill appeared to hold on to gains in his holdings of the video game retailer.”
Illumina fell 1% following the genetic sequencing company’s decision to spin off its tumor testing division.
Furthermore, the actions of tesla fell 0.5% after its sales of Chinese-made electric vehicles fell 6.6% to 72,573 in May compared to a year earlier, Reuters reported on Tuesday, “citing data from the Passenger Vehicle Association from China”.
Intel Corporation presented a series of artificial intelligence chips, a day after Nvidia(+1%) and amd (+2.2%) made a similar announcement as the chipmaker seeks to narrow the wide rift with its rivals. But in Wall Street suggest that more updates will probably be needed Intel before it can meaningfully compete with its rivals, its shares are down 0.9%.
On the balance sheet front, the weaker forecasts for the second quarter of Bath & Body Works They overshadowed first-quarter results that beat expectations, causing the company’s shares to fall 13%.
Oil weakened after the OPEC+ meeting
The crude oil prices fell on Tuesday, extending the previous session’s losses, after a group of major producers signaled an increase in supply later this year.
The Organization of Petroleum Exporting Countries and its alliesknown as OPEC+, They agreed on Sunday extend most of its oil production cuts until 2025but they left room for the eight-member voluntary cuts to be gradually reversed.
