US Stocks Face Test From Jobs Report and Rate Risks
Investors are preparing for a critical labor market update on June 5 as persistent inflation and rising Treasury yields threaten the recent market rally. The report is expected to show an increase of 85,000 jobs, while quarterly results from Broadcom will also test the momentum of the technology sector.
The United States will release monthly employment data on June 5 as investors weigh if high inflation will derail a nine-week stock rally. The S&P 500 rose 10% this year, while the Nasdaq Composite climbed 16%. A strong jobs report could trigger interest rate hikes, threatening the artificial intelligence trade.
Horizon Investment Services CEO Chuck Carlson said investors returned to megacap tech stocks after a March correction because earnings grew at rapid rates. Markets also gained on hopes for an end to the conflict in Iran, which has now stretched to three months.
