US stock futures surge on payrolls disappointment; Apple helps sentiment
2024.05.03 08:45
Investing.com– U.S. stock index futures rose further Friday after the key monthly employment report showed slowing jobs growth, raising hope that the Federal Reserve could ease interest rates relatively shortly.
AT 08:40 ET (12:40 GMT), rose 505 points, or 1.3%, lifted 60 points, or 1.2%, and climbed 280 points, or 1.6%.
Nonfarm payrolls shows slowing jobs growth
The U.S. economy added jobs at a slower rate in April, with only 175,000 jobs added last month, compared with a revised 315,000 in March, potentially impacting when the Federal Reserve decides to roll out possible interest rate reductions this year.
The unemployment rate also rose to 3.9% in April, climbing from 3.8% the prior month, but still the 27th consecutive month that the jobless rate has been below 4%. Crucially average hourly earnings growth slowed to 0.2% on the month.
This reading comes after a Fed meeting earlier this week, where the central bank warned that interest rates will remain high for longer in the face of sticky inflation, although the central bank also indicated it will not raise rates any further.
Apple surges on earnings, buyback
Stronger than expected earnings from Apple (NASDAQ:) had earlier boosted sentiment, as declines in the tech giant’s revenues and earnings were not as deep as expected, although revenue from iPhone sales still missed expectations. This came amid softening demand and increased competition across its major markets, specifically China.
But Apple’s services revenue beat expectations, while the firm forecast a return to revenue growth in the June quarter.
Apple’s shares were also boosted by a record $110 billion stock buyback, while the firm also increased its dividend payout.
Block surges on Q1 beat; Coinbase, Cloudflare sink
Other companies in the spotlight Friday include Block (NYSE:), after the payments firm surged 9% premarket after its first-quarter earnings topped estimates. The firm also revealed that it had been steadily investing in .
Amgen (NASDAQ:) stock surged 14% premarket after the biotechnology firm expressed confidence after completing an interim analysis of its mid-stage study of experimental weight-loss drug MariTide.
Cryptocurrency exchange Coinbase (NASDAQ:) fell 3% even as its quarterly earnings beat expectations, as pressure came chiefly from a sustained slump in cryptocurrency prices.
Cybersecurity firm Cloudflare (NYSE:) slid 13% after weak guidance overshadowed strong quarterly earnings.
Crude on track for hefty weekly losses
Crude prices edged higher from near seven-week lows Friday, but were headed for steep losses this week on demand uncertainty, robust U.S. stockpiles and easing tensions in the Middle East.
By 08:40 ET, the U.S. crude futures traded 0.5% higher at $79.33 a barrel, while the Brent contract climbed 0.5% to $84.06 per barrel.
Both benchmarks were set to lose between 5% and 6% this week, as investors worried about the prospect of higher-for-longer interest rates curbing growth in the U.S., the top global oil consumer, and in other parts of the world.
(Ambar Warrick contributed to this item.)
