Wall Street’s week ahead: Jobs report on tap for soaring U.S. stocks as rate path, bond yields eyed as risks
Investors are closely watching the upcoming labor market report as they assess the impact of inflation and potential interest rate hikes on the U.S. stock rally. The S&P 500 has risen significantly this year, driven by strong performance in technology stocks, particularly in the AI sector. Key economic data, including employment figures and inflation rates, will influence market sentiment and Federal Reserve policy decisions in the near future.
- ▪The S&P 500 is up more than 10 percent this year, with technology stocks leading the charge.
- ▪The monthly employment report due on June 5 is expected to show an unemployment rate of 4.3 percent and an increase of 96,000 jobs.
- ▪Rising inflation and the potential for interest rate hikes are causing concerns among investors, particularly if the employment report exceeds expectations.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountInvestors will turn to an important labor market update next week as they weigh whether simmering inflation and the potential for interest rate hikes could derail the rally in U.S. stocks.Broadcom’s results also pose a test in the coming week for the red-hot AI trade. This week, U.S. equity indexes continued their charge higher, with the benchmark S&P 500 up more than 10 per cent on the year.Technology stocks have led a resurgent market on the back of strong profit outlooks driven by the AI boom, after tech and other influential megacap stocks were hit hard in March.“That group really had a significant correction,” said Chuck Carlson, chief executive officer at Horizon Investment Services.
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