U.S. Markets Close Higher Amid Rate Cut Expectations; Global Markets Show Mixed Trends

On Tuesday, June 4th, the U.S. stock markets witnessed a rebound, closing higher as potentially troubling labor data heightened anticipation of a Federal Reserve rate cut. The release of the jobs report, which indicated a slump to a three-year low in job openings, seemingly spurred investors to bet on easing monetary policy. This optimism overshadowed the early losses experienced by major indexes.

On the economic front, U.S. factory orders in April saw a rise of 0.7%, reaching a total value of $588.2 billion. Conversely, there was a notable decrease in job openings which fell by 296,000, landing at 8.059 million for the same month, sending mixed signals to the market.

Leading the gains in the S&P 500, sectors such as real estate, consumer staples, and information technology ended on a high note. However, materials and energy sectors did not partake in the rally, ending the day in the red.

Market Performances

The Dow Jones Industrial Average ended the day up by 0.36%, closing at 38,711.29. The broader S&P 500 edged up by 0.15%, to close at 5,291.34, while the tech-heavy Nasdaq Composite also made gains of 0.15%, finishing at 16,853.74.

Asian Markets Overview

In Asia, the markets exhibited a mixed performance. Japan's Nikkei 225 experienced a decline by 0.88%, while Australia’s S&P/ASX 200 advanced by 0.41%. India’s Nifty 50 saw an impressive gain of 3.36%. On the flip side, China's markets faced headwinds, with the Shanghai Composite closing down by 0.83% and the Shenzhen CSI by 0.58%. Hong Kong's Hang Seng slightly dropped by 0.10%.

European Markets Gain Ground

European markets were on the rise during the early trade hours, with the EURO STOXX 50 up by 1.10%, Germany's DAX increasing by 0.69%, France's CAC ascending by 0.65%, and the U.K.'s FTSE 100 trading higher by 0.25%.

Commodities Market

In commodities, Crude Oil WTI and Brent saw modest increases of 0.12% and 0.17% respectively. Despite the gains, oil prices hovered near four-month lows amidst expected supply increases from OPEC+ coupled with the mixed economic cues from the U.S. Natural Gas rose by 1.51%, while precious metals gold and silver saw increases of 0.15% and 0.35%, respectively. Copper ended marginally higher by 0.10%.

Futures and Forex

Looking ahead at U.S. market futures, the outlook appeared positive with Dow futures up by 0.14%, S&P 500 futures by 0.22%, and Nasdaq 100 Futures by 0.50%. In the Forex market, the U.S. Dollar Index rose by 0.21%, with notable movements in USD/JPY and USD/AUD which increased by 0.82% and 0.11% respectively.

Stocks, Markets, Economy