U.S. stocks subdued early as they sort out payroll data

Reuters

U.S. stocks subdued early as they sort out payroll data

5 lug. 2024, ore 2:09 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>LIVE MARKETS-U.S. stocks subdued early as they sort out payroll data</title></head><body>

Nasdaq green, S&P 500 edges up, Dow slips

Comm Svcs leads S&P 500 sector gainers; energy weakest group

Euro STOXX 600 index ~flat

Dollar, crude ~flat; bitcoin slides >4%; gold gains ~1%

U.S. 10-Year Treasury yield dips to ~4.32%

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U.S. STOCKS SUBDUED EARLY AS THEY SORT OUT PAYROLL DATA

Wall Street's main indexes are relatively muted early on Friday after data showed U.S. job growth slowed to a still-healthy pace in June.

According to the CME's FedWatch Tool, the market expectation that the Fed will leave rates unchanged later this month, but then cut rates by 25 basis points in September and again in December remains intact.

However, the probability of a September cut has increased to around 72%, from about 67% just before the NFP data came out. The probability of a December reduction is now around 47% from about 46% just before the numbers.

The U.S. 10-year Treasury yield US10YT=RR has dipped to around 4.32% from a 4.35% close on Wednesday.

Meanwhile, changes are relatively muted, but a majority of S&P 500 .SPX sectors are lower with energy .SPNY taking the biggest hit. Communication services .SPLRCL is leading the gainers. These are the only sectors posting an absolute change of more than 1%.

Under the surface, FANGs .NYFANG and gold stocks .HUI are outperformers.

Regarding the payroll data, Scott Wren, senior global market strategist at the Wells Fargo Investment Institute in St. Louis, MO, said:

"That was towards what the Fed wants to see. It was a favorable number that shows the economy is slowing down and wage growth was slowing a bit with unemployment ticking up. Wage growth was under 4%. The Fed wants to see it in the 3s."

Wren added, "It confirms a lot of the news we've seen lately that things are slowing down."

Here is an early trade snapshot from around 1000 ET (1400 GMT):

(Terence Gabriel, Sinéad Carew)

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