Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Stock Market Today: S&P 500 jumps, but ends week in red as June Fed rate cut fades

AuthorYasin Ebrahim
Published 04/04/2024, 08:15 PM
Updated 04/05/2024, 04:04 PM
© Reuters.

Investing.com-- The S&P 500 snapped a two-week wining streak despite a strong rally Friday as a stronger-than-expected jobs report didn't stoke a jump in wages, adding to hopes of a soft landing for the economy.    

At 16:00 ET (21:00 GMT), Dow Jones Industrial Average rose 307 points, or 0.80%, S&P 500 rose 1.1%, and NASDAQ Composite added 1.2%. All three benchmarks, however, ended the week in the red as odds of a June rate cut fell. 

Nonfarm payrolls grow more than expected in March

Data released earlier Friday showed that nonfarm payrolls increased by 303,000 jobs in March, more than the expected 212,000 gain.

The unemployment rate came in at 3.8%, a fall from 3.9% the prior month, while average earnings rose 0.3% on a monthly basis, in line with expectations. 

The sharp uptick in new jobs created last month didn't spark a jump in wages to threaten a faster pace of inflation as the number of people entering the labor market, or the participation rate, jumped.

While the odds of a June Fed rate cut fell to 51% from 59% a day earlier, pushing Treasury yields higher, Morgan Stanley continued its call for a June cut.  

"The data point to a noninflationary expansion of the labor market and do not alter the Fed's course to a June cut," Morgan Stanley said.

Inflation data for March is due next week, and is likely to provide more cues on the path of interest rates. 

Apple axes jobs; Tesla cuts price on Model Y

Apple (NASDAQ:AAPL) stock rose 0.5% after the iPhone maker announced it is laying off more than 600 workers in California, its first major job losses since the pandemic.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Tesla Inc (NASDAQ:TSLA) fell 3.6% after the electric vehicle maker cut the price on some of its Model Y SUVs by about $5,000. Musk, meanwhile, denied a Reuters that it was scrapping its plans to produce a low-cost Model 2.

Johnson & Johnson (NYSE:JNJ) stock was flat after the drug giant announced it will buy medical device maker Shockwave Medical (NASDAQ:SWAV), up 2%, in a $13.1 billion deal.

HubSpot (NYSE:HUBS) stock rose 2% after Reuters reported that Google-owner Alphabet (NASDAQ:GOOG) has been talking to its advisers about the possibility of making an offer for the online marketing software company with a market value of $35 billion.

Energy stocks ride oil prices higher

Energy stocks including Valero Energy Corporation (NYSE:VLO), Occidental Petroleum Corporation (NYSE:OXY), Baker Hughes Co (NASDAQ:BKR) were up more than 1%, underpinned by a jump in oil prices to their highest level in five months as worsening geopolitical tensions in the Middle East raised concerns over tightening supply.

Iran, the third-largest OPEC producer, has vowed revenge against Israel for an attack on Iran's embassy in Syria on Monday, and Israel has vowed to defend itself.

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

I like Trump better than Biden. At least under his management, the situation has eased.
under trump, illegal immigration increased. The murder rate rose to the highest level since 1997, the economy lost 2.9 million jobs. The unemployment rate increased to 6.3%..
also under trump, The federal debt held by the public went up, from $14.4 trillion to $21.6 trillion...
Put a name on it...you have lots of opinions, and none of them really matter...
yesterday was just an excuse to t take profit ..😂
It was a good jobs report on general, but bad because of the lack of the prospect of an increase in wages for the people who have to do those jobs.
Fed Shmed. get rid of the scammers.
BIGGEST INVESTMENT JOKE IN THE WORLD.
the democrats really think they are voted by very stupid citizens, maybe they are right :) good night usa!
It's Trump who 'loves the uneducated'.
vote Diaper Donny & Pence of Shit
cry more resistard.
Oh wow doesnt matter what the report would have came in as. Bad jobs report we rally bc “rate cut hopes”. Good jobs report they rally us bc “soft landing hopes.” What a joke. Complete fraud. Hope these greedy walnstreet guys get margin called and bagged one day from being incompetent and full port longs every dip while selling poots
The reality is that the Biden admin has been intentionally padding the employment numbers by using taxpayer funds to create fake government jobs. If the media were honest they would report on government vs nongovernment jobs created to show what Biden admin is really doing to fake these numbers in addition to revealing the massive amount of lost full time jobs with shift to part time positions.
common sense
Yes Brandon = do two, three jobs to be able to eat, drive, and pay rent. Some job machine!
you must have taken your investment advice from the permabears in here, since you now, as an investor, with markets at record highs, have to work 3 jobs...
US weekly average hours have been trending down gradually since mid-2021, down by 1/2 hr.
trump loves the poorly educated
President Biden: Jobs Machine.
yes, government jobs paid by tax dollars. not real growth
Another magaloon comment detached from reality.
Good article (surprisingly!), thank you. The title is still misleading (it's about rate cuts again - wages gone lower, so inflation should also go down, hence rate cuts coming), plus a soft landing but this is not the main reason here.
Average Hourly Earnings grew as expected.
Thank God another 20% of the jobs are by the govt. Outhiring the rest of the sectors.
The health care sector added the most jobs. Get your facts straight.
how many part time jobs, added to thus glowing number? What’s Nancy/paul play?? Thats the two to watch.
Don't sweat the details. Advancing tech is allowing more flexible forms of employment. Americans are working spending with their growing disposable income and paying off their mortgages.
permabears are devastated..
Institutions are selling into the rally. These last pumps are to have the last few exit safely. Inflation is jumping big time, oil and housing are roaring, economy is booming, and market crash signs all over, at least a strong correction. ATHs, Max rates, oil and gold rallies are the indicators of a market top. Its either a rate hike or a crash that is about to end this last pump.
50/50. You not the can see the future of the next hour but very talented strategist ;)))
Fortune teller
Partly right - on a global indices level they should correct, as heavily overvalued stocks need to dump, giving way to other industries/values/small-mids.
No rate cuts, but nonetheless, a Friday miracle unfolds in the BIGGEST INVESTMENT JOKE IN THE WORLD. Another financial knife in the back of America heading info the weekend.
Why no rate cuts? All intact so far - wages are growing slower, hence inflation should be also moderating.
Market is still pricing in 1st rate cut in June.
lol market has been pricing in endless amount of rate cuts for the past 6 months. Give it a break
Bidenomics is working.
Biggest Bidenomics recession defense mechanism. Excessive Fiscal Spending.
You'd rather see people thrown out of work in service to your dogma?
@Casador: Federal spending has been down every year under Biden; was up every year under Trump.
The number of part-time jobs soared by 691K to 28.632 million, up from 27.941 million while full-time jobs dropped by 6,000, to 132.940 million from 132.946 million. Even scarier since March 2023, the number of full-time workers has collapsed by 1.347 million while the number of part-time workers exploded by 1.888 million! You need to reassess your strong job payroll numbers!!
Strong payrolls, another FED saying probably no rate cuts, gold and silver skyrockets, oil goes up, stocks go up, euro goes up.... Amazing
inflation will goes up :)
Look at this gaslighting. Literally two headlines on the front page right now "Fed cut in June remains likely - Citi" and "Fed's Bowman says time hasn't arrived for cutting rates"
In the past 24 hours two separate people from the Fed have come out saying rate drops are not happening. Biden admin is now also pushing for Ukraine to enter NATO, which would put US into armed conflict with nuclear power Russia. In addition to this Biden admin is also pushing us into armed conflict with Iran due to the Israel vs Palestine nonsense. Meanwhile, stock market continues pumping people's 401ks into 5 over-priced tech stocks with P/Es approaching 100.
you should be isolated like Trump say. by the way US will be alone in confrontation with China when you left all ally in Europe and NATO
What you have against fighting evil forces ? Same talk was during second Warld War and we fot Perl Harbor as the result of you associationists. So, go ahead, put your head in the sand like nothing happens
@dylan: If you “cannot afford a house or car and” “have to have two jobs to afford food”, you shouldn't be giving financial/economic advice/opinions on investing.com. Unless you want us to join you ;-)
PE was 70% higher when Biden won the 2020 election. So Bidenomics got us stock market up + PE down.
Thanks to Bidenomics, I cannot afford a house or car and I have to have two jobs to afford food, but I am very thankful that Nancy Pelosi was able to afford another vineyard and more armed security thanks to the stock market going up!
People are bearish because anybody who has been in the market for more than 10 years knows that when P/Es of big tech companies grow to current levels it ends in a major stock market collapse. NVDA makes up 5% of the total value of the entire US stock exchange and is more valuable than the entire Chinese stock market combine and only had $20 billion revenue reported last quarter.
seems investing.com is a bearish community, people cannot accept the new market strategy, people cannot accept market is fake, money also fake, people are old school
Bears are much louder. Bulls accept the market for what it is and largely just buy-and-hold.
statements like that tells the reader you haven't lived long enough to know that there is nothing new About how this market is reacting to present economic conditions.there is no old school or new market strategy.
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.