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The latest Department of Labor data reveals a cooling US labor market, with initial jobless claims holding steady at 248,000 for the week ending June 7, surpassing economists' forecasts of 242,000. Continuing claims climbed to 1.956 million, the highest since November 2021, suggesting that unemployed individuals are struggling to find new jobs. This data aligns with other indicators of a slowing labor market, including May's nonfarm payrolls of 139,000, a decline from April, and the lowest private sector job growth in over two years at 37,000, per ADP data. Revisions also showed fewer jobs added in prior months than initially reported. Amidst cooling inflation, these labor trends have fueled discussions on Federal Reserve interest rate cuts, with traders now estimating a 25% chance of a cut by July, up from 19% previously. Economists like Neil Dutta from Renaissance Macro highlight rising continuing claims as a sign of increasing unemployment and declining hiring rates, even if layoffs remain stable. Dutta also cautions that the Fed's wait-and-see approach could lead to significant policy errors if inflation does not behave as anticipated, underscoring the high uncertainty in the current economic landscape.
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Asia's markets opened with significant turbulence as major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), declined following Israel's airstrikes on Iranian nuclear facilities, heightening geopolitical tensions. BTC fell 4.7% to $103.3K, while ETH dropped to $2,694, despite a 40% gain over the past three months, outpacing BTC and the CoinDesk 20 index. Analysts see ETH's performance as a bellwether for altcoin investment appetite, supported by over $1.25 billion in spot ETH ETF inflows since mid-May. Meanwhile, the Monetary Authority of Singapore (MAS) enforced stricter regulations, requiring licensing for crypto firms operating overseas from the city-state, prompting closures of exchanges like Bitget. On the innovation front, Quranium launched QSafe Wallet, a quantum-secure crypto wallet to counter future quantum computing threats. Market movements also saw gold surge 3% to $3,426.95 amid Middle East tensions, while Asia-Pacific indices like the Nikkei 225 fell over 1%. In contrast, the S&P 500 gained 0.38%, buoyed by tech sector strength. These developments reflect a complex interplay of geopolitical risks, regulatory shifts, and technological advancements shaping global markets.
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Boeing's stock (BA) fell nearly 8% in premarket trading after an Air India Boeing 787-8 Dreamliner crashed shortly after takeoff near Ahmedabad airport, carrying 242 people. The flight, headed to Gatwick Airport in London, marks the first major crash of a Dreamliner since its 2011 debut. Over 200 bodies have been recovered, with survival unclear. Boeing issued a statement supporting Air India and expressing condolences. This incident is a significant setback for Boeing, which has been recovering under new CEO Kelly Ortberg with a 20% year-to-date stock increase, despite a challenging 2024 following a "door plug" incident on an Alaska Airlines flight that led to lawsuits, investigations, and a leadership overhaul. The company also faced scrutiny after fatal 737 Max 8 crashes in 2018 and 2019, exposing software flaws and resulting in a global grounding. The Ahmedabad crash further impacts Boeing's reputation, with shares of suppliers like GE Aerospace and Spirit AeroSystems also declining in premarket trading by 4% and 3%, respectively.
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This article from Yahoo Finance's Morning Brief highlights a significant shift in market dynamics, where President Trump's social media posts on trade deals, like the recent China agreement announcement, no longer sway markets as they did previously. On Wednesday, despite Trump's post, major index futures remained largely unaffected, with investor attention turning to economic data instead. A cooler-than-expected May consumer price index report fueled optimism for Federal Reserve rate cuts, possibly twice this year, signaling a move away from trade war dominance. Strategists note that while trade policy uncertainty has lessened, tariffs persist at around 15%, and markets are adapting to this reality by focusing on US economic resilience. The Federal Reserve's trajectory, alongside cooling inflation and a stable labor market, now takes center stage, with recession fears fading. Upcoming Fed decisions and Chair Jerome Powell's comments are poised to test market expectations for policy easing driven by positive economic trends rather than labor market distress.
