It was updated on Jul 8, 2022.
The stock market moved slightly higher on Friday after investors assessed a stronger-than- expected jobs report as a sign that the Federal Reserve's aggressive rate hikes are not going to plunge the economy into a recession.
Experts say the market has moved into a bad news phase.
The markets opened lower, but rebounded, with the S&P 500 gaining and the tech-laden Nasdaq barely moving.
The US economy added back 372,000 jobs in June, more than the 255,000 economists had projected but less than the 384,000 jobs added in May.
The strong jobs report is expected to strengthen the Federal Reserve's resolve in continuing to aggressively raise interest rates in a bid to combat inflation.
With recession fears still weighing on investor sentiment, markets are now pricing in a roughly 95 percent chance that the Fed will deliver a 75-basis-point rate hike later this month.
The Washington Post reported that the deal to buy the social media company is in danger and that some discussions have been stopped.
A day after jumping 15% on the back of a 4-for-1 stock split, the shares of video game retailer GameStop fell in early trading.
The jobs report is negative for near-term equity sentiment because of the bad mindset in the market. The Fed will probably see the solid jobs numbers and feel confident that its monetary policy tightening isn't breaking the economy, with another 75 basis point looking likely at the central bank's upcoming policy meeting later this month, he says.
After posting solid gains in the previous days, the S&P is looking for a win this week. The benchmark index recorded its fourth consecutive session of gains on Thursday, its longest positive streak since March, but remains down roughly 19% so far in 2022.
The market moved into the Good News is Bad News phase as it had hoped that a weaker headline payroll report would allow the Fed to check off another box. It's not yet.
The labor market added 372,000 jobs in June as layoffs and recession fears grow.
The stock market is going to have a rare winning week.
There is a risk that high inflation could become entrenched.
Despite the yield curve inversion and global recession fears, stocks are clawing back losses.
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