US stocks took a hit on Friday after a surprising May jobs report showed much stronger hiring growth than expected, throwing a wrench in expectations for interest-rate cuts. The S&P 500 and Dow Jones Industrial Average futures dropped around 0.4%, while Nasdaq 100 futures fell around 0.3%.
The US economy added a whopping 272,000 jobs in May, well above expectations, but the unemployment rate also rose to 4.0%. This unexpected surge in hiring has raised doubts about the Federal Reserve’s plans to lower rates from their current high.
Meanwhile, all eyes are on GameStop booster Keith Gill, also known as “Roaring Kitty,” who is set to make his first live YouTube appearance since sparking the meme stock rally three years ago. GameStop shares surged 47% on Thursday but plummeted after the company announced plans to sell up to 75 million shares and reported a decline in sales in the first quarter.
Additionally, Nvidia is expected to complete its 10-for-1 stock split after the market closes. The AI chipmaker briefly reached a $3 trillion valuation earlier in the week but has since faced mounting short bets against the company.
In other news, Robinhood remains on an impressive streak, with its stock price up 27% in the last 30 days and recent acquisitions in the crypto space. The market is still hopeful for rate cuts in 2024, despite the surprising jobs report, as global central banks continue to ease monetary policy.