5 things to know before the stock market opens on Friday, April 1

Here are the most important news, trends and analysis investors need to start their trading day:

1. Futures rise after jobs report and worst quarter in 2 years

US Stock Futures started the second quarter higher on Friday after lower-than-expected but still solid March job growth. Wall Street on Thursday ended its worst quarter since the first three months of 2020, which included the covid pandemic minimum at the end of March of that year. the Dow Jones Industrial Averagethe S&P 500 and the nasdaq all fell about 1.5% on Thursday. for Q1, the Dow Jones and the S&P 500 closed with losses of 4.57% and 4.95%, respectively. The Nasdaq lost 9.1%. The start of a cycle of rate hikes by the Fed, high inflation and Russia’s invasion of Ukraine all have contributed to the fights for the shares so far this year.

2. Recession signal: key Treasury spread changes for the first time since 2019

Treasury yields rose on Friday’s jobs report, a day after the 2 year performance briefly rose above the 10 year return for the first time since 2019, a reversal that typically occurs before economic downturns. That spread was on both sides of the reversal on Friday morning. Some data providers showed the 2-year/10-year inversion for a few seconds on Tuesday, but CNBC data did not confirm this at the time.

In another key yield spread, which was reversed on Monday for the first time since 2006, the 5 years and the 30 years He came back again on Friday. Short-term yields outperforming longer-term ones indicate market concern that the Fed could raise interest rates too quickly. A performance differential over a much shorter time horizon: the 3 months Treasury and the 2-year has been decidedly positive.

3. March hiring falls short of estimates, but still a pretty strong report

The US economy added a little less jobs than expected in March. Nonfarm payrolls expanded by 431,000 in the month, while the unemployment rate fell 3.6%. Economists surveyed by Dow Jones were looking for 490,000 in payrolls and 3.7% for the level of unemployment. Average hourly earnings, a closely watched inflation metric, rose nearly 5.6% year over year in March, just above estimates. Job growth in February was revised up from 72,000 to 750,000. January was revised higher from 23,000 to 504,000.

4. Russian troops return Chernobyl nuclear site to Ukraine

At latest developments in Russia’s war against Ukraine:

  • Russian troops left the heavily contaminated Chernobyl nuclear site early Friday after returning control to the Ukrainians.
  • In what would be the first such attack, if confirmed, the governor of Russia’s Belgorod region accused Ukraine of flying helicopter gunships across the border on Friday morning and attacking an oil depot.
  • Ukraine has also continued to carry out successful but limited counterattacks within its borders. Western officials said there were growing signs that Russia was using its de-escalation talk in Ukraine as a cover to regroup. Ukrainian and Russian negotiators planned to resume talks via video on Friday.

5. GameStop soars as video game retailer announces stock split plan

Actions of gamestop jumped 15% in premarket Friday, the morning after video game retailer announced plans for a stock split. GameStop said it will seek approval at its next shareholders’ meeting for an increase in the number of Class A common shares from 300 million shares to 1 billion shares to make part of a split in the form of a stock dividend.

GameStop was on a roll in March, up 35% at Thursday’s close, as enthusiastic retail investors backed their favorite meme. The stock got a boost early last month when Chairman Ryan Cohen, who is undergoing a transformation into a digital company, bought an additional 100,000 shares, taking the activist investor’s ownership to 11.9%.

— CNBC reporters sarah min, jesse pound, hannah miao, Jeff Cox and yun li as well as The Associated Press contributed to this report.

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