The latest nonfarm payrolls data surpassed expectations, indicating a strong economy. However, Wall Street ended mostly flat on Friday amid concerns that the Federal Reserve may delay interest rate cuts. The U.S. added 272,000 jobs in May, higher than the forecasted 185,000, with the unemployment rate ticking up to 4%.
The S&P 500 initially dropped after the report, but later recovered to hit a new intraday record high. The index closed down 0.13% at 5,345.95 points, while the Nasdaq Composite fell 0.25% to 17,130.33 and the Dow Jones Industrial Average lost 0.24% to 38,794.29.
There is now a 56% chance of a rate cut in September, according to traders. The focus will shift to U.S. inflation data and the upcoming Federal Reserve policy meeting.
GameStop saw a decline in stock value as ‘Roaring Kitty’ returned to YouTube, while Nvidia’s market cap fell below $3 trillion. On the other hand, Lyft shares rose after forecasting 15% annual growth in bookings through 2027.
Overall, the market remains uncertain about future rate cuts and economic outlook, with investors closely watching for any signals from the Federal Reserve.