U.S. stock market indices are trading in red in the opening hours of the trade on Thursday. The Dow Jones Industrial Average (.DJI) declined by 161.5 points. The S&P 500 (.SPX) reduced by 20.3 points, and the Nasdaq Composite (.IXIC) declined by 19. 7 points. Meanwhile, market is awaiting the outcome of the talk between Trump and Xi Jinping as the duo spoke over phone on Thursday, according to an official report from Xinhua News Agency. According to Chinese media, the call was initiated due to Trump’s request. The talk comes at a time of escalating trade tensions between the two nations, which have significantly strained relations between the world’s two largest economies. This marked the first formal conversation between the two leaders since Trump took office.
Meanwhile, the U.S. government’s latest jobless claims report—an indicator of layoffs across the country shows that layoffs have remained relatively steady in recent years, some early signs of weakness are emerging in the labor market.
Yesterday, a report from payroll company ADP showed that U.S. private employers hired fewer workers than economists anticipated last month. This has raised concerns about Friday’s highly-anticipated jobs report from the U.S. Labor Department, which will provide a broader picture of employment trends.
Analysts are forecasting that the May jobs report will show U.S. employers added just 130,000 jobs last month, down from 177,000 in April. Despite the challenges of high inflation and the looming threat of President Trump’s tariffs, the U.S. job market has remained resilient—at least for now.
However, any signs of weakness in the labor market could have broader implications for the economy, especially as traders have recently started betting that the Federal Reserve will need to cut interest rates later this year to support economic growth. This shift in market expectations has led to a decline in Treasury yields.
The weaker-than-expected ADP report prompted Trump to call on Fed Chair Jerome Powell to speed up rate cuts. The Federal Reserve has yet to reduce interest rates this year, but it is expected to do so by the end of 2025. The Fed is also closely monitoring the economic impact of Trump’s tariffs, which could stoke inflation if the economy weakens further.
Amazon India has introduced a flat Rs 5 marketplace fee for all customer orders, following the footsteps of other e-commerce platforms. This fee will also be applicable to Prime members, except for certain categories and services. The increasing popularity of quick commerce has proven that people are willing to pay for convenience.