Most stocks are ticking higher this morning as Wall Street approaches its recently set records, according to the Associated Press. The S&P 500 was up 0.4% in early trading, coming off its sixth winning month in the last seven. The Dow Jones Industrial Average edged up 34 points, and the Nasdaq composite rose 0.7%. Nvidia rose another 4%. GameStop soared 64% in a move reminiscent of its rocket ride that shook Wall Street three years ago. It jumped after a Reddit account associated with a central character in the 2021 escapade said it had built a position of 5 million shares, along with options to buy more.
With earnings season effectively wrapped up, markets and economists will be focused on labor data this week. The government releases April job openings data on Tuesday, its layoffs report on Thursday, and the more comprehensive May jobs report on Friday.
While the labor markets have remained sturdy in the midst of elevated interest rates meant to curb inflation and cool the economy, there have been signs the job market is showing some softness in recent months. Jobs and wage data are one economic component the Fed takes into consideration when deciding whether to raise, cut, or leave interest rates alone.
The Fed’s benchmark lending rate is at a two-decade high after the central bank started cranking up rates in March 2022 to battle the soaring inflation that took hold during the pandemic rebound. Fed officials have left its benchmark rate alone at its last six meetings because inflation has not yet settled at its 2% target. Investors had been hoping for multiple rate cuts this year, but are largely now betting on just one, likely toward the end of the year.
Most economists are projecting the Fed won’t raise or cut rates at its next meeting later this month.
