S&P 500 Price Forecast: Steady at 5352.95 Amid Anticipation of Employment Report

U.S. stock index futures showed little movement on Friday as investors awaited the critical employment report for insights on the U.S. labor market.The benchmark S&P 500 (SPX) and Nasdaq saw slight declines in Thursday’s session despite reaching intraday record highs earlier.

Technology stocks, which fell the previous day, experienced minor gains in premarket trading, although overall activity was subdued in anticipation of the May nonfarm payrolls data.

SPX Price Forecast Amid Employment Report Release

Economists polled by Reuters predict the U.S. economy added 185,000 new jobs in May, with the unemployment rate remaining at 3.9%. This report is crucial as markets seek confirmation of a loosening labor market, potentially allowing the Federal Reserve more flexibility to reduce interest rates. Recent data, including the weekly jobless claims report, indicates an easing labor market, supporting the likelihood of rate cuts without sparking inflation.

Market Anticipation of Federal Reserve’s Moves

Traders now estimate a 68% chance of a rate reduction in September, according to the CME’s FedWatch tool, with expectations for approximately two cuts this year based on LSEG data. Fresh inflation data, due next week, will further influence market expectations just before the Fed’s two-day policy meeting on June 12. The central bank is expected to maintain steady rates but will provide updated economic and policy forecasts that will guide future cuts.

Technology Stocks and Pre-market Movements

In premarket trading, chipmaker Nvidia (NASDAQ: NVDA) rose slightly by 0.2% after a previous session loss reduced its market valuation below $3 trillion, positioning it behind Apple (NASDAQ: AAPL) as the world’s third-most valuable company. Meanwhile, GameStop (NYSE: GME) surged 33.2% premarket following the anticipated return of stock influencer “Roaring Kitty” to YouTube.

As of 5:39 a.m. ET, Dow e-minis decreased by 6 points, or 0.02%, S&P 500 e-minis remained unchanged, and Nasdaq 100 e-minis increased by 18.75 points, or 0.10%. This cautious trading reflects the market’s anticipation of the employment report’s impact on future Fed rate decisions and overall market dynamics.

• Economists forecast 185,000 new jobs in May, unemployment rate to hold steady at 3.9%.
• Traders see a 68% chance of a September rate reduction, with two cuts expected this year.
• Nvidia (NASDAQ: NVDA) rises 0.2% premarket, GameStop (NYSE: GME) surges 33.2% on influencer news.

S&P500 Technical Outlook