US stock futures rise on weak payrolls data, increasing expectations of a rate cut

From Investing.com: 2024-05-05 19:44:49

U.S. stock index futures rose after weaker-than-expected labor data fueled bets on a September rate cut. Apple Inc’s strong earnings added to the positive sentiment. The first-quarter earnings season continues this week, with key Federal Reserve officials speaking for more interest rate cues.

Softer-than-expected payrolls data raised hopes of a cooling labor market, increasing the likelihood of a rate cut. Traders bet on a September rate cut, despite only a 44% probability. Inflation remains above the Fed’s 2% target, which could delay rate cut plans.

Wall Street saw gains in early May, recovering from losses in April due to concerns of higher U.S. rates. Investors are still monitoring signs of economic cooling. The earnings season continues this week, with Uber and Disney among the major companies reporting.



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