Markets remained mostly unchanged on Thursday, but for the week, the S&P 500 and Nasdaq Composite saw gains. However, this could change following the release of the jobs report. Economists were expecting 182 thousand new jobs and an unemployment rate of 3.9%, but the actual numbers showed 272 thousand new jobs and an unemployment rate of 4%. This news caused stock futures to drop and interest rates to rise. Prior to the report, there was little expectation of an interest rate cut at next week’s Federal Reserve Open Market Committee (FOMC) meeting, with most anticipating a cut in September, according to the CME Fed Watch Tool.
Following the jobs data, the focus will shift to the Consumer Price Index (CPI), Producer Price Index (PPI), and the upcoming FOMC meeting. The Fed will release their projections on interest rates, providing insight into longer-term monetary policy. With the recent interest rate cut by the European Central Bank (ECB), investors are eager to hear what Jerome Powell will have to say. Additionally, shares of Nvidia will begin trading at their split-adjusted price on Monday after a ten-for-one split today. Investors should review their portfolios to ensure their allocation aligns with their long-term objectives.
GameStop made headlines as its share price surged 47% after Keith Gill, also known as Roaring Kitty, announced a live event on his YouTube channel. However, the company preannounced earnings, missing on earnings and revenue expectations. GameStop also filed to sell an additional seventy-five million shares on top of the forty-five million already sold. In premarket trading, shares were down around 15%. As for the day ahead, the impact of the jobs report on the markets will be closely watched, along with the trading of Nvidia and GameStop. Investors are encouraged to be cautious with speculation and to stick to their investing plans and long-term objectives.
Overall, the market seems unconcerned despite the volatility, with the VIX still below average levels. As Nvidia experiences investor FOMO ahead of its split, it will be interesting to see how the stock performs. Similarly, the enthusiasm surrounding GameStop ahead of the Roaring Kitty event is worth observing. While speculation can be enticing, investors should remember to keep it as a small portion of their overall investable assets. It will be crucial to monitor market movements and make informed decisions based on individual financial goals and risk tolerance.
