The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite each rose more than 0.3% after closing the March trading lower lower to record their worst quarter since early 2020. Investors on Friday closely monitored the Department of Labor Monthly Jobs Report, the most up-to-date picture of hiring power across the US economy. U.S. employers added 431,000 jobs in March. Consensus economists were looking to raise non-farm payrolls by 490,000, according to Bloomberg figures, slowing from a profit of 678,000 in February, but still rising well above pre-pandemic trends. The unemployment rate fell to 3.6% from the expected 3.7% – the lowest since February 2020. Shares are moving forward in April after a volatile month and quarter of trading. The S&P 500 and Dow fell more than 4.5% each for the first three months of 2022, closing the worst quarters — and first quarterly cuts — since the first quarter of 2020. The Nasdaq Composite fell the most, recording down 9.1% from the last quarter as investors moved away from technology and growth stocks that had driven the market higher last year. April has historically been a strong month for equities and has actually been positive for the S&P 500 for 15 of the last 16 years, according to Ryan Detrick of LPL Financial. This time, however, stocks are facing a variety of headwinds that could reverse this historically positive seasonality. In particular, a series of concerns surrounding the geopolitical and macroeconomic background have contributed to the worst quarterly performance of shares in the last two years and have not yet been fully resolved. The geopolitical risks have been heightened by Russia’s invasion of Ukraine in late February, increasing the range of further cries in global supply chains already struggling to recover from the pandemic break. A sharp rise in prices, and in particular oil and energy prices, has raised further concerns about consumer resilience – the mainstay of the domestic economy – in the future. And the US Federal Reserve has embarked on a protracted process of raising interest rates and tightening financial conditions in a market that has been accustomed to easy monetary policy since 2020. The story goes on “I think investors are very happy that the quarter is over. It was a difficult quarter. Obviously inflation was bad until the end of the quarter,” Robert Cantwell, Upholdings’ portfolio manager, told Yahoo Finance Live on Thursday. . “And in all likelihood, over the next four to six weeks, it is likely to continue to be bad news, because inflation is persistent and we are still recording record growth rates from the first four months of last year.” “Because as we get to the second half of next quarter, you could see a scenario where growth rates start to pick up again while inflation moderates and that has the potential to bring a lot of bulls back into the market,” he added. . LPL Financial points out that corporate profits may be another factor leading to the recent recovery in equities. Even in the face of decades of war in Eastern Europe and high inflation, earnings remain bullish and earnings per share estimates for the S&P 500 for the next four quarters are higher in March. Although not very much at 1.5%, the positive outlook is significant under the circumstances – especially compared to how other countries did. Inflation drives the most significant corporate profits as companies enjoy greater pricing power as they transfer higher costs to customers. “On the back of energy independence, the US corporate earnings trajectory has remained unaffected by rising energy costs and high inflation so far,” said LPL Financial strategist Jeffrey Buchbinder. International markets fell in March. “US profit prospects are the envy of the world right now.” –
9:30 a.m. ET: Shares are rising after the March Jobs Report
Here were the main moves in Friday’s open markets:
S&P 500 (^ GSPC): +12.54 (+ 0.28%) at 4,542.95 Dow (^ DJI): +74.62 (+ 0.22%) at 34,752.97 Nasdaq (^ IXIC): +70.78 (+ 0.50%) at 14,291.30 crude (CL = F): -1.01 $ (-1.01%) to $ 99.27 per barrel Gold (GC = F): -23.10 $ (-1.18%) to $ 1.930.90 per ounce 10-year Treasury (^ TNX): +9.9 bps for 2.4260% yield
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8:30 a.m. ET: The new payrolls are coming lower than expected
The US economy saw another significant pay rise in March as the labor market expanded its strong and rapid recovery to bring employment back to pre-pandemic levels. U.S. employers added 431,000 jobs, lower than expected 490,000 jobs. Unemployment, meanwhile, fell more than the expected two-tenths of a percent, closer to a record low of 3.5 percent in February 2020, said Bankrate senior financial analyst Mark Hamrick, although points out that the labor force participation rate remains 1 percentage point below the pre-pandemic level. Labor force participation rose slightly to 62.4% after an unexpected jump to 62.3% in last month’s data which meant more people were returning to look for work or get jobs after being sidelined by COVID-19 . “Apart from the positive momentum in March, the outlook for next year is for further moderation in job creation,” Hamrick said in a note. “Encouraged by excessively high inflation, a Federal Reserve hawk feels compelled to brake. It is difficult to imagine how the tightening does not ultimately affect the labor market.” –
7:14 a.m. ET Thursday: Futures are charged higher to start trading in April
Here are the main moves in futures trading ahead of Open Friday:
S&P 500 Futures (ES = F): +22.00 points (+ 0.49%) at 4,552.75 Dow futures (YM = F): +172,00 points (+ 0,50%) at 34,790.00 Nasdaq Futures (NQ = F): +80.00 points (+ 0.45%) at 14,948.75 Crude (CL = F): + $ 0.14 (+ 0.14%) to $ 100.14 per barrel Gold (GC = F): -21.90 $ (-1.12%) to $ 1.932.10 per ounce 10 years Public (^ TNX): 0.00 bps for a yield of 2.3270%
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6:12 p.m. ET Thursday: Stock futures open slightly higher
This is where the futures contracts of the major stock indices opened on Thursday afternoon:
S&P 500 Futures (ES = F): +12.5 points (+ 0.28%) at 4,543.25 Dow futures (YM = F): +100 points (+ 0.29%) at 34,718.00 Nasdaq Futures (NQ = F): +51.75 points (+ 0.35%) at 14,920.50
NEW YORK, NY – MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2022 in New York City. After a positive week for the shares, the Dow Industrial Average fell more than 100 points in the morning trading. (Photo by Spencer Platt / Getty Images) – Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter. Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
