The trading session on Thursday witnessed a notable mixed performance across major stock indexes as investors remained cautious ahead of the release of the May nonfarm payroll report. Amid this backdrop of uncertainty, shares of GameStop experienced another surge, propelled by the announcement from Keith Gill, a prominent figure in retail trading, regarding a scheduled livestream on his YouTube channel for Friday.
Anticipation surrounded the release of the May nonfarm payroll report, with economists projecting that U.S. employers likely added 175,000 jobs last month, a figure in line with April’s reading. Analysts underscored the significance of these forthcoming employment reports, emphasizing their potential to shape the outlook for interest rate cuts and trigger volatility in the stock market. Bank of America highlighted a range between 125,000 and 175,000 job additions as a “Goldilocks zone,” suggesting that such figures could catalyze a fresh rally in stocks.
Against this backdrop, JPMorgan strategists outlined three scenarios that could prompt a sell-off in stocks during the summer, with surprises in upcoming employment reports being one of them. This subtle shift in market sentiment reflects a growing concern about economic growth and the job market, particularly following the release of jobless claims figures, which rose to a four-week high.
In the midst of these market dynamics, shares of GameStop saw a notable spike in Thursday’s trading session, driven by renewed activity on social media platforms associated with Keith Gill. The rally in GameStop’s stock also had a positive spillover effect on fellow meme stock AMC, contributing to overall market volatility.
However, the upward momentum in Nvidia’s stock stalled after reaching fresh records earlier in the week, with the chip maker experiencing a 2% decline following its ascent to become the world’s second most valuable company.
As trading came to a close on Thursday, major U.S. indexes showed mixed results:
- The S&P 500 closed at 5,352.96, marking a marginal decrease of 0.1%.
- The Dow Jones Industrial Average ended the day at 38,886.17, posting a modest increase of 0.2% (79 points).
- The Nasdaq Composite finished at 17,173.12, down 0.1%.
In the commodities, bonds, and cryptocurrency markets:
- Oil futures surged, with West Texas Intermediate crude rising by 2% to $75.58 a barrel.
- Gold prices increased by 0.8% to $2,394 per ounce.
- The 10-year Treasury yield edged lower to 4.281%.
- Bitcoin experienced a slight decline to $70,925.
Despite the temporary pause in the record market rally observed in recent weeks, strategists continue to offer insights and recommendations to navigate market uncertainties. BMO Capital Markets unveiled nine new stock picks across its US SMID-cap and US tactical equity portfolios, aiming to provide investors with opportunities for potential growth amidst evolving market conditions.