In a late afternoon session on Friday, major indexes witnessed a decrease from their session highs. The Dow Jones Industrial Average and the Nasdaq composite bounced back from their 50-day moving averages, while the S&P 500 climbed above its 21-day moving average. Amidst these movements, Nvidia experienced a rise in its stock value, while Tesla saw a decline.
The release of strong jobs data on Friday diminished hopes of a rate cut happening in June. The weekly charts of all three indexes suggested potential losses. The job market added 303,000 jobs in March, surpassing the estimated 200,000 according to Econoday. The unemployment rate dropped to 3.8% from the previous 3.9%, and the labor participation rate increased to 62.7% from February’s 62.5%. In response to this data, the benchmark 10-year Treasury note saw a 6 basis point surge, leading to reduced chances of a rate cut in June.
Stocks listed in the MarketSurge Growth 250 such as GE Aerospace, Vertiv, MakeMyTrip, and Celsius witnessed notable gains of 4% to 6%. These companies, in addition to others, were featured in the IBD 50 list. Despite the strong jobs report, the Dow Jones and the S&P 500 saw increases of 0.8% and 0.9% respectively, with all sectors except utilities showing growth. The Nasdaq maintained a 1% lead.
On Friday, the small-cap Russell 2000 saw its gains drop to 0.5% as it rebounded off its 10-week moving average. The Innovator IBD 50 ETF gained nearly 2%. The stock market also saw a rise in crude oil prices to $85.65 a barrel due to concerns about supply shortages.
Stock market movers included Salesforce, Microsoft, and Caterpillar, among others, which gained in the Dow Jones. However, Intel, McDonald’s, Verizon, and Dow experienced losses. Johnson & Johnson announced plans to acquire Shockwave Medical, causing the latter’s stock to rise by 2%. As stocks like Broadcom and Google parent Alphabet rebounded above key moving averages, Nvidia faced resistance at the 900 level.
In contrast, Tesla’s stock dropped over 3% after it was reported that plans for a mass-market car had been canceled, shifting focus to self-driving robotaxis. Banks like JPMorgan Chase, Citi, Wells Fargo, and BlackRock are expected to report their first quarter 2024 earnings in the upcoming week.
Overall, the stock market today saw a mix of gains and losses, with various sectors reacting differently to the market conditions and economic data.
