Here are the most important news, trends and analysis investors need to start their trading day:
1. Futures fall after worst day for Dow, Nasdaq since 2020
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, on May 5, 2022.
Andrew Kelly | Reuters
US stock futures turned positive and then negative again on Friday after the government’s strong April jobs report. The 10-year Treasury yield rose on Friday, up from Thursday’s trip above 3.1%, the highest since November 2018. Rising bond yields on Thursday triggered a stock market crash that wiped out the previous day’s strong Fed easing rally and then some.
- The Dow Jones Industrial Average lost 1,063 points, or 3.1%, on concern that the Fed’s tightening cycle to slow the economy would not control inflation. The tech-heavy Nasdaq fell nearly 5% to its lowest closing level since November 2020, falling further in a bear market. Both drops snapped three-day winning streaks and were the worst single-day drops since 2020.
- The S&P 500 fell almost 3.6% on its second worst day of the year. The S&P 500 and the Dow Jones were in corrections.
2. Job growth accelerates in April: Nonfarm payrolls are better than expected
A ‘We’re hiring!’ the sign is displayed at a Starbucks
mario tama | Getty Images News | fake images
The Labor Department reported Friday morning that 428,000 nonfarm jobs were added to the US economy in April, better than expected. The unemployment rate last month held steady at 3.6%. A slight drop was expected. Average hourly earnings in April rose 0.3% month-over-month, slightly less than expected, and matched estimates with a 5.5% year-over-year gain.
- The report shows that jobs remain scarce even as inflation remains high. Contributing to Thursday’s stock market sell-off was the government’s first-quarter report, which shows the steepest drop in worker productivity in 75 years and rising labor costs.
3. Oil Jumps as EU Considers Sanctions on Russian Crude; bitcoin sinks
Drilling rigs sit unused on a business lot located in the Permian Basin area on March 13, 2022 in Odessa, Texas. US President Joe Biden has imposed a ban on Russian oil, the world’s third-largest oil producer, which may mean oil producers in the Permian Basin will need to pump more oil to meet demand. .
Joe Raedle | Getty Images News | fake images
US oil prices rose about 1.5% on Friday to around $110 a barrel, shrugging off concerns about global economic growth as proposed European Union sanctions on Russian oil increased the prospect of more limited supply. West Texas Intermediate crude, the US benchmark and the global benchmark Brent crude oil were on track to post weekly gains for the second consecutive time.
Bitcoin is a volatile asset and has been known to go up or down more than 10% in a single day.
Jakub Porzycki | Nurfoto | fake images
Bitcoin dipped below $36,000 on Friday, a day after Wall Street plummeted. The world’s largest cryptocurrency, touted by its proponents as a hedge against inflation, remained correlated to the Nasdaq, falling or rising alongside tech stocks. Bitcoin is down nearly 50% from its all-time high of over $68,000 in November, with risky assets taking a hit in 2022 from rising inflation, Russia’s war in Ukraine, and a tighter policy from the Federal Reserve.
4. FDA Limits Use of J&J’s Covid Vaccine Due to Blood Clotting Risks
Licensed vocational nurse Eloisa Flores prepares a dose of Johnson & Johnson’s Janssen Covid-19 vaccine at a vaccination clinic in Los Angeles, California, on December 15, 2021.
Frederick J. Brown | AFP | fake images
The Food and Drug Administration has decided to limit the use of Johnson & Johnson’s Covid vaccine for adults due to the risk of a rare blood clotting syndrome. J&J’s vaccine is one of three approved for use in the United States. The FDA said Thursday that the J&J vaccine can be given in cases where the Pfizer or Moderna Covid vaccines are not available or if a person does not want to receive the other vaccines. The US health agency said its analysis of the risk of clotting problems after receiving the J&J vaccine warrants limiting the authorization.
5. Under Armor sinks after issuing weak guidance, unexpected loss
The interior of an Under Armor store is seen on November 3, 2021 in Houston, Texas.
Brandon Bell | fake images
Shares of Under Armor fell more than 15% in premarket Friday, shortly after the shoe and apparel maker released a disappointing outlook for fiscal 2023. In the quarter just ending in March, Under Armor reported an unexpected loss and sales that were below Wall Street estimates. Global supply chain challenges and another round of Covid lockdowns in China took a toll on demand. Several international corporations, including Apple and Estee Lauder, have warned in recent days that China’s Covid controls will affect their businesses.
-CNBC hannah miao, jesse pound, tanaya macheel, Vicky McKeever, Jeff Cox, patti domm Y lauren thomas as well as Reuters contributed to this report.
— Register now for the CNBC Investing Club to follow all of Jim Cramer’s stock moves. Follow the broader market action like a pro on professional cnbc.