Investors in the U.S. stock market are in waiting mode this week ahead of the release of key economic data.
On Thursday, June 03, 2021, human resources software provider ADP is scheduled to release its May payroll change report. It is expected to show a 650,000 decrease in the number of unemployed workers, which will supplement April’s hiring of 742,000 workers.
The Labor Department’s report on new weekly jobless claims is expected to show new claims falling below 400,000 for the first time since March 2020. The statistics are projected to show a decline in the number of new unemployed as more and more of the recovery spans all sectors of the economy.
The May employment numbers are really important. Not only does it affect investor sentiment as they assess the progress of the economic recovery, but it may also influence the Fed’s decision to extend or reduce the amount of support for the stock market and economy, which will be made at the end of July.
Regarding the unexpected rise in meme stocks, as happened with AMC assets, it remains to be seen just how dangerous this is to the market. Rather, it is a learning experience.
One thing is clear, the stock market as it was under our grandparents, even our parents no longer exist. Now investment professionals may have to start exploring alternative ways to gather data, rethinking their investment theses to consider this growing cohort of retail investors.
Who can influence stock prices by acting in concert against those who seek to play the downside?