NEW YORK (BLOOMBERG) – Stocks fell as Apple dipped below the USD3 trillion mark and some other megacaps like Tesla and Meta Platforms slipped. Amazon.com jumped after its results. Treasuries rose, reversing some of this week’s losses after mixed jobs data.
The S&P 500 erased an advance that approached 1 per cent earlier. Apple dropped almost 5 per cent after its outlook sparked worries over tepid demand. Amazon rose about 8 per cent on a bullish revenue forecast. Treasury 10-year yields fell from the highest level since November. The dollar retreated against all of its developed-market peers.
“We think it’s worth staying cautious while still respecting the market’s momentum,” said Callie Cox, investment analyst at eToro. “Bull markets are tough to fight, but look for quality risk and brace yourself for a summer storm in what’s usually a bumpy time of year.”
There was something for every bull and bear in the jobs report: the 187,000 growth in payrolls was softer than estimated, wages topped forecasts and unemployment fell. With 47 days to go before the next Federal Reserve decision – and so many other economic reports in between – the one thing that really hasn’t changed was the sense the Fed is close to wrapping up its hiking cycle.
Swap traders project a 40 per cent chance of another quarter-point rate increase by the end of this year – with the contracts pricing in about 10 basis points of tightening. By the end of 2024, they project rate cuts totalling more than 125 basis points.
