Good morning,
So far this week, the narratives driving markets remain firmly in place — growth stock leadership, the go/no-go status of the Strait of Hormuz, and incoming macroeconomic data. Collectively, those forces have continued to support equities, with the S&P 500, Nasdaq Composite, Russell 2000, EAFE, and Emerging Markets indices returning +1.49%, +2.76%, +0.96%, +1.83%, and +7.69%, respectively, for the week. That Emerging Markets number is not a typo — the asset class is now up +23.52% year-to-date.
April payroll data was released this morning, though traders appeared to question how much influence the report would ultimately have relative to the market’s dominant themes. U.S. nonfarm payrolls rose by +115,000 in April versus expectations of +65,000. The report suggests that job growth in the U.S. remains intact and that fears of an imminent economic contraction have yet to materialize.
Futures were already higher prior to the release and moved modestly higher afterward, reinforcing the sense that the market remains primarily focused on two things: growth companies continuing their ascent and hopes that the Strait of Hormuz ultimately reopens soon.
Be well,
Mike