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Wall Street posts modest profits as job reports are getting the Fed’s rate hikes on track

The trader is working on the floor of the New York Stock Exchange (NYSE) in New York City, USA on March 30, 2022. REUTERS / Brendan McDermid

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  • The unemployment rate drops to 3.6%, but the estimate is 3.7%.
  • Non-farm payrolls increased by 431,000 last month
  • GameStop wants a stock split

New York, April 1 (Reuters)-Monthly Employment Report shows a strong labor market, and the Federal Reserve is likely to get on track to maintain its hawkish policy stance, so the S & P 500 will be on Friday. It rose moderately to start the second quarter of the year.

The Ministry of Labor’s employment report showed a rapid pace of employment by employers while wages continued to rise, but not enough to keep up with inflation.read more

US employers added 431,000 jobs in March, which fell short of the 490,000 estimate, but still showed a strong increase in employment. The unemployment rate fell to 3.6%, the lowest level in two years, and the average hourly wage increased by 5.6% year-on-year. The foundation.read more

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Number of non-farm payrolls

The report raised expectations that central banks are likely to be willing to raise interest rates as they unleash easy monetary policy and seek to curb inflation.read more

Brian Jacobsen, Senior Investment Strategist at Allspring Global Investments in Menomonee Falls, Wisconsin, said:

“If other data from the present to the next Fed meeting remain this rosy, the Fed will feel comfortable hiking at 50 basis points and announce a positive reduction in its balance sheet. “

Preliminary data show that the S & P 500 (.SPX) rose 15.32 points (0.34%) to close at 4,544.79 points and the Nasdaq Composite Index (.IXIC) rose 42.93 points (0.27%) to 14,263.45. The Dow Jones Industrial Average (.DJI) rose 139.10 points (0.40%) to 34,817.45.

According to CME’s FedWatch Tool, the expectation of a 50 basis point rate hike at the central bank’s May meeting is 73.3%. Many central bank policymakers have shown that they are ready for a larger rate hike.

Chicago Federal Reserve Bank of Chicago Governor Charles Evans said Friday that there is no significant risk of using “partial” halvings to bring borrowing costs closer to neutral unless the goal is to raise interest rates significantly. Said.

Other data on Friday showed that US manufacturing activity slowed unexpectedly in March, but remained firmly in the expansion area as tight supply chains continued to put upward pressure on input prices. rice field.read more

Following the salary report, the yield curve for US Treasuries has skyrocketed, with some of the yield curve between 2-year and 10-year bonds being highlighted, and many consider it a reliable indicator of recession for the third time this week. Showed the inversion of.

The S & P 500 concludes its first quarter on Thursday, with the COVID-19 pandemic in the U.S. further fueled by the war in Ukraine, raising concerns about rising prices, and the Fed’s response could slow economic growth. As a result, it was the largest decrease every quarter. .. However, March stock prices rebounded slightly as the benchmark index rose 3.6%.

Ryan Detrick, chief market strategist at LPL Financial, states that April has shown the best performance on average for all months since 1950.

Video game retailer GameStopCorp (GME.N), part of last year’s “meme stock” trading frenzy, finally fell after announcing plans to give up early profits and seek shareholder approval for a stock split. ..read more

Apple Inc. (AAPL.O) fell after JP Morgan, along with Qualcomm (QCOM.O), removed shares from the analyst’s “focus list.”read more

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Report by Chuck Mikolajczak Edited by Marguerita Choy

Our Criteria: Thomson Reuters Trust Principles.

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