Here are the top news, trends and analysis that investors need to start their trading day:
1. Wall Street braces for a dip after the worst day for the Dow and Nasdaq since 2020
A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York, May 5, 2022.
Andrew Kelly | Reuters
US stock futures fell on Friday ahead of the April jobs report. The 10-year Treasury yield remained high, just below Thursday’s rally to more than 3.1%, the highest level dating back to November 2018. Thursday’s rally in bond yields dragged down the stock market that wiped out the Fed’s strong rally the previous day and from Then some.
- The Dow Jones Industrial Average lost 1,063 points, or 3.1%, on concerns that the Fed’s tightening cycle to slow the economy would not keep inflation under control.
- The tech-heavy Nasdaq fell nearly 5% to its lowest closing level since November 2020, and fell further into a bear market.
- Both of those drops broke a three-day winning streak and were the worst one-day declines since 2020.
- The S&P 500 fell about 3.6% on its second worst day of the year.
- The S&P 500 and Dow were in corrections.
2. Economists see another month of strong job growth in April
A “We’re hiring!” A banner is displayed at Starbucks
Mario Tama | Getty Images News | Getty Images
The main event Friday morning is 8:30 a.m. with the release of the Labor Department’s latest employment report. In another month of strong job growth, economists expect 400,000 non-farm payrolls to be added in April, with the unemployment rate dropping to 3.5%. The wage component of the report may be the most important as financial markets are afraid of inflation. Average hourly earnings in April are expected to grow 0.4% month over month, or 5.5% year over year, the same pace as in March. Contributing to the massive sell-off in the stock market on Thursday was the release of a first-quarter report showing the largest drop in worker productivity in 75 years and rising labor costs.
3. Oil prices rise at a time when the European Union is considering imposing sanctions on Russian crude. Plunge Bitcoin
Unused drilling rigs in a corporate park located in the Permian Basin region on March 13, 2022 in Odessa, Texas. US President Joe Biden has imposed an oil embargo on Russian, the world’s third largest oil producer, which could mean oil producers in the Permian Basin will need to pump more oil to meet demand.
Joe Riddell | Getty Images News | Getty Images
US oil prices rose 2% on Friday, topping $110 a barrel, shrugging off concerns about global economic growth as proposed European Union sanctions on Russian oil raised the prospect of tighter supply. West Texas Intermediate, the US benchmark, and the global benchmark Brent crude were on track for a second consecutive weekly gain.
Bitcoin is a volatile asset, and it is known to swing more than 10% higher or lower in a single day.
Jacob Borzeki | Norfoto | Getty Images
Bitcoin fell below $36,000 on Friday, a day after Wall Street plunged. The world’s largest cryptocurrency, promoted by proponents of an inflation hedge, has remained tied to the Nasdaq, falling or rising along with technology stocks. Bitcoin is down nearly 50% from its all-time high of more than $68,000 in November, with risky assets dropping in 2022 due to rising inflation, Russia’s war in Ukraine and Fed policy tightening.
4. The Food and Drug Administration limits the use of the Covid J & J vaccine to blood clotting risks
Licensed professional nurse Eloisa Flores prepares a dose of Johnson & Johnson’s Janssen Covid-19 vaccine at the Immunization Clinic in Los Angeles, California on December 15, 2021.
Frederick J. Brown | Agence France-Presse | Getty Images
The U.S. Food and Drug Administration has decided to limit the use of Johnson & Johnson’s COVID vaccine for adults due to the risk of developing a rare blood clotting syndrome. The J&J vaccine is one of three vaccines allowed for use in the United States. The US Food and Drug Administration said Thursday that the J&J shot can be given in cases where the Pfizer or Moderna Covid vaccines are out of reach or if the individual doesn’t want to get the other shots. The US Health Agency said its analysis of the risk of clotting problems after receiving the J&J vaccine orders limits on authorization.
5. Under the shield sank after issuing weak guidance and unexpected loss
The interior of the Under Armor store is seen on November 3, 2021 in Houston, Texas.
Brandon Bell | Getty Images
Under Armor shares fell nearly 20% in the Friday market, shortly after the shoe and athletic footwear maker released a disappointing forecast for fiscal year 2023. In the quarter just ending in March, Under Armor reported an unexpected loss and sales that missed Wall Street estimates. . Global supply chain challenges and another round of Covid lockdowns in China have dented demand. A number of international companies, including Apple and Estee Lauder, have warned in recent days that withdrawing from China’s Covid controls will hit their businesses.
– CNBC channel Hana MiuAnd Jesse PoundAnd Tanaya MachelAnd Vicki McIverAnd Patty Doom And Lauren Thomas As well as Reuters contributed to this report.
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