Here are the most important news, trends and analyzes from which investors should start their trading day:
1. Futures fall after the worst day for the Dow, Nasdaq since 2020
A trader works in the trading hall of the New York Stock Exchange (NYSE) in New York, May 5, 2022.
Andrew Kelly Reuters
US stock futures turned positive and then negative again on Friday after the government’s strong job report in April. The yield on 10-year bonds rose on Friday, above the growth on Thursday over 3.1%, high compared to November 2018. The increase in bond yields on Thursday caused a stock market crash, which erased the strong relief of the Federal Reserve from the previous day and then some.
- The Dow Jones Industrial Average lost 1,063 points, or 3.1 percent, on fears that the Fed’s tightening cycle would slow inflation. The tech Nasdaq fell nearly 5% to its lowest level of closure since November 2020, falling further into a bear market. Both of these declines broke three-day winning streaks and were the worst one-day declines since 2020.
- The S&P 500 fell nearly 3.6 percent on its second worst day of the year. The S&P 500 and Dow were in adjustments.
2. Job growth accelerates in April: wages in non-agricultural sectors are better than expected
A “We hire!” Sign appears on Starbucks
Mario Tama Getty Images News Getty Images
The Labor Department said Friday morning that 428,000 better-than-expected non-agricultural jobs were added to the U.S. economy in April. The unemployment rate last month remained stable at 3.6%. A slight decline was expected. Average hourly earnings in April rose slightly less than expected by 0.3% per month and coincided with forecasts of 5.5% annual profit.
- The report shows that jobs remain limited, even when inflation remains high. Contributing to the stock market sell-out on Thursday was a government report for the first quarter, showing the sharpest decline in workers’ productivity in 75 years and rising labor costs.
3. Oil jumps as the EU considers sanctions on Russia’s crude crude product; bitcoin is sinking
The drilling rigs remain unused on a company plot located in the Perm Basin region on March 13, 2022 in Odessa, Texas. US President Joe Biden has imposed a ban on Russian oil, the world’s third-largest oil producer, which could mean that oil producers in the Permian Basin will have to pump more oil to meet demand.
Joe Riddle Getty Images News Getty Images
U.S. oil prices rose about 1.5 percent on Friday to about $ 110 a barrel, dispelling concerns about global economic growth as proposed European Union sanctions against Russian oil raised the prospect of tougher supplies. West Texas Intermediate oil, the U.S. benchmark and global crude oil Brent were on track for the second week in a row.
Bitcoin is a variable asset and is known to swing more than 10% higher or lower in one day.
Jakub Porzycki Nurfoto | Getty Images
Bitcoin fell below $ 36,000 on Friday, a day after the fall of Wall Street. The world’s largest cryptocurrency, touted by supporters as hedging inflation, has remained linked to the Nasdaq, falling or rising in tandem with technology stocks. Bitcoin fell nearly 50 percent from its all-time high of more than $ 68,000 in November, with risky assets detected in 2022 due to rising inflation, Russia’s war in Ukraine and stricter Fed policies.
4. The FDA restricts the use of J&J’s Covid vaccine because of the risks of blood clotting
Licensed professional nurse Eloise Flores prepares a dose of Johnson & Johnson’s Janssen Covid-19 vaccine at a vaccination clinic in Los Angeles, California on December 15, 2021.
Frederick J. Brown | AFP | Getty Images
The Food and Drug Administration has decided to limit the use of Johnson & Johnson’s Covid vaccine for adults due to the risk of a rare blood clotting syndrome. The J&J vaccine is one of three approved for use in the United States. The FDA said Thursday that the J&J vaccine could be given when Pfizer or Moderna Covid vaccines are not available or if a person does not want to receive other vaccines. The U.S. Health Agency said its analysis of the risk of clotting problems after receiving the J&J vaccine guaranteed that the permit would be limited.
5. Under Armor sinks after issuing weak targeting, unexpected loss
The interior of the Under Armor store can be seen on November 3, 2021 in Houston, Texas.
Brandon Bell Getty Images
Shares of Under Armor fell more than 15% in Friday’s preliminary market shortly after the maker of sneakers and clothing released disappointing forecasts for fiscal 2023. In its just-closed quarter of March, Under Armor reported unexpected losses and sales that were below Wall Street forecasts. The challenges of the global supply chain and another round of blocking Covid in China have reduced demand. A number of international corporations, including Apple and Estee Lauder, have warned in recent days that the impact of Chinese control over Covid will hit their business.
– Hannah Miao of CNBC, Jesse Pound, Tanya Machel, Vicki McKeever, Jeff Cox, Patti Dom and Lauren Thomas, and Reuters contributed to this report.
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