Last Updated at 4:00PM EST
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U.S. stock indices finished on a high note today, with the Dow Jones Industrial Average (DJIA), S&P 500 (SPX), and the Nasdaq 100 (NDX) gaining 1.65%, 1.85%, and 2.13%, respectively.
In economic news, the Federal Reserve announced that March Consumer Credit surged by $26.51 billion, exceeding expectations and outpacing February’s revised total of $15.03 billion.
Total outstanding consumer credit increased to $4.85 trillion. Revolving credit, including credit card debt, rose at an annual rate of 12.3% (when seasonally adjusted) to $1.24 trillion. Nonrevolving credit, made up of auto and student loans, expanded at an annual rate of 3.1% to $3.61 trillion.
St. Louis Federal Reserve Bank President James Bullard shared his view that slow economic growth should be the base case rather than a recession. While acknowledging the risks of an economic downturn, Bullard remained optimistic about achieving a soft landing.
He backed the Fed’s recent 25-basis point hike and emphasized the importance of monitoring economic data to inform future policy adjustments. Bullard downplayed risks in the banking sector, insisting that regional banks should fare well despite potential challenges.
As for the possibility of a central bank digital currency in the U.S., Bullard stressed the need for congressional direction and support, predicting that the topic will remain up for debate in the near term.
Last Updated at 1:00PM EST
Stocks are in the green so far in today’s trading session. As of 1:00 p.m. EST, the Dow Jones Industrial Average (DJIA), S&P 500 (SPX), and the Nasdaq 100 (NDX) were up 1.2%, 1.5%, and 1.7%, respectively.
In addition, WTI crude oil is higher today, as it hovers around the mid-$71 per barrel range. Nevertheless, the commodity’s overall downtrend has caused prices at the pump to decline when compared to last week.
Indeed, the national average for regular gas was last $3.561 per gallon, down from last week’s reading of $3.627.
The highest prices can be found in California, where prices are substantially higher than the national average, at $4.835 per gallon. On the other hand, Mississippi is the state with the lowest gas prices, at $3.042 per gallon.
Last updated: 10:55AM EST
Today’s stock rally continues to gain momentum as stocks look to rebound from yesterday’s dip. As of 10:55 a.m. EST, the Dow Jones Industrial Average (DJIA), S&P 500 (SPX), and the Nasdaq 100 (NDX) were up 1.3%, 1.5%, and 1.6%, respectively.
Last updated: 9:33AM EST
Stocks opened higher after the jobs report indicated that the U.S. labor market continued to be strong.
The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were all up by 1.09%, 1.11%, and 1.12%, respectively, at 9:35 a.m. EST, May 5.
Last updated: 8:40AM EST
The U.S. jobs report for the month of April indicated that the slowing U.S. economy generated 253,000 jobs in April from 165,000 in March and above consensus expectations of 178,000. The unemployment rate ticked slightly lower to 3.4% in April from 3.5% in March and below consensus estimates of 3.6%.
In April, average hourly earnings for all employees on private nonfarm payrolls rose by 0.5% to $33.36, more than consensus forecasts of a hike of 0.3%. Over the past year, average hourly earnings have increased by 4.4%.
Following the hotter-than-expected jobs report, futures were on a downslide, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) down by 0.5%, 0.7%, and 0.86%, respectively, at 8:40 a.m. EST, May 5.
First published: 5:04AM EST
U.S. futures are trending up on Friday morning, boosted by the better-than-expected earnings report from Apple (NASDAQ:AAPL), posted after the market closed yesterday. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.38%, 0.36%, and 0.27%, respectively, at 4:00 a.m. EST, May 5.
All three major U.S. indices are set to finish the trading week in the negative zone. Remarkably, the Dow Jones Industrial Average has turned negative so far for the year 2023. Investors are fraught over the impact of the recent banking crisis on the banking sector. Several regional bank stocks continued to plunge in yesterday’s trading session following the possibility of PacWest Bancorp (NYSE:PACW) going bankrupt. Despite reassurances from a few banks’ management, traders believe the worst is yet to come.
On the economic front, April’s Non-Farm payrolls and Unemployment Rate data, as well as wage growth information, are set to be released today. The weekly initial jobless claims rose above expectations, growing by 13,000 to 242,000, as per data released yesterday. A softening labor market may nudge the Federal Reserve to take a dovish stance on interest rates.
Elsewhere, most European indices are trading in the green today, following the 25 basis point rate hike by the European Central Bank (ECB), as expected. The ECB is trying to curb a stubbornly high core inflation figure of 5.6% reported for April.
Asia-Pacific Markets End Mixed
Asia-Pacific indices ended the trading session mixed today, following the U.S.’ tightening monetary policy and fresh fears of a banking contagion. Meanwhile, Japan’s markets remained closed for trading today.
Hong Kong’s Hang Seng ended the trading session up by 0.41%, while China’s Shanghai Composite and Shenzhen Component indices ended the day down by 0.48% and 1.14%, respectively.
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