Sp 500 Ends Week Lower

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Sp 500 Ends Week Lower

SP 500 Ends Week Lower On Stronger Nfp Report

The SP 500 index has finally ended its winning streak of 2-weeks after a strong NFP report. Although the SP 500 rallied on Friday, it was still not enough to send the index in green before the end of the weekly trading session.

Meanwhile, the DJIA gained 0.80% (307 points), and the NASDAQ index also added around 1.2%. Similarly, the SP 500 also added 1.1% to its value on Friday.

Stock Market Remains Mixed

Despite the gains seen during Friday's session, all of these indexes have still closed in red on the weekly timeframe. According to experts, this has to do with the fact that the chances of a rate cut in June have gone down once again!

The NFP report was a pleasant surprise as even the forecast was way lower than the actual reading of 303K. The report also showed an improvement in the employment situation while the average earnings also showed a minor upside.

If we delve into the finer print, it appears that NFP will lead to a jump start in inflation as wage growth is still lacking any upside surprise.

After the release of the NFP report, the chances of a rate cut in June are now standing at 51% from a previous value of 59%.

According to Morgan Stanley, the NFP report shows that the labor market is expanding in a noninflationary manner. As a result, it will not impact the Fed's June cut.

Next week, the SP 500 traders will be focusing on the inflation data for the month of March. As the key theme remains the rate cuts, investors will be getting clues on how inflation will shape the Fed's rate cut decisions.

If we look at big-time stocks from the S&P 500 index, Apple (AAPL) gained 0.5% after the announcement of layoffs. Similarly, Tesla Inc. has lost 3.6% of its stock price after the announcement of price cuts for a particular SUV model.

Johnson & Johnson, another big stock from the S&P 500, remained flat after the announcement of an acquisition.

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