Nasdaq 100, Dow Jones, S&P 500 News: Stocks Set for Weekly Gains Despite Volatile Trading

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Nonfarm Payrolls Beat Expectations

The Labor Department reported a significant increase of 272,000 jobs in May, surpassing expectations. Additionally, average hourly earnings rose more than anticipated. This initially led to a dip in stock prices as traders reduced the likelihood of a September rate cut. However, the market rebounded as other data pointed to potential economic weaknesses. The unemployment rate unexpectedly rose to 4%, and a household survey indicated a 408,000 decline in employment. Revisions for April and March Nonfarm Payroll numbers also showed lower figures than previously reported.

Sector Movements and Notable Stock Performances

Rate-sensitive real estate stocks fell by 0.3%, while financial stocks gained 0.6%, leading sector advancements. The major indexes are set for weekly gains, with the Nasdaq looking at a 2.6% increase, its best week in five. Several stocks made significant moves midday:

GameStop: The video game retailer’s shares plunged over 28% following a poor earnings report, revealing a 29% drop in net sales year-over-year and plans to sell additional stock.

Vail Resorts: Shares fell 12% after the company missed earnings estimates, reporting $9.54 per share on $1.28 billion in revenue, below the expected $9.97 per share and $1.30 billion in revenue.

Oddity Tech: Shares soared 23% after announcing a $150 million share buyback program and raising its second-quarter earnings outlook.

Traders Eye September Rate Reduction

Traders currently see a 56% chance of a rate reduction in September, as per the CME’s FedWatch tool. Next week’s U.S. inflation data, arriving just before the Fed’s two-day policy meeting on June 12, will be crucial. Market participants are looking for insights into the timing and pace of potential rate cuts in the Fed’s updated economic and policy forecasts.