Thursday, June 2, 2022

US Market Wrap 06/02/2022

- Stocks in the United States have rebounded from a two-day low ahead of Friday's nonfarm payroll report, as traders anticipate lower labour demand, which might ease inflation concerns.

- The S&P 500 gained 1.8%, with increases in materials and communication services leading the way, while the tech-heavy Nasdaq 100 gained 2.8%. Microsoft (MSFT) reversed earlier losses after lowering its forecast for the impact of a strong currency. Treasury yields remained stable, with the 10-year yield in the United States reaching 2.91%.

- Traders mulled private hiring data, which showed the smallest growth since the economic recovery began, and factory orders, which came in lower than expected, earlier in the day. Lael Brainard, vice chair of the Federal Reserve, said it's difficult to see a case for a rate hike pause in September, and that increases of 50 basis points in June and July appeared realistic.

- In July and August, OPEC+ agreed to increase the size of its oil-supply hikes by roughly 50% in response to demand from key users, especially the United States, to cover the gap caused by sanctions on Russian supplies. Inflationary pressures may be relieved if oil prices fall. However, some investors are concerned that the rate of monetary tightening may cause the economy to enter a recession. After initial losses, WTI Crude oil rose 1.8%.

- Tesla (TSLA), Nvidia (NVDA), and Amazon (AMZN) led gainers by value among individual stock movers. The stock of Hewlett Packard Enterprise Co. fell after the company lowered its earnings prediction due to supply concerns.