5 important points to understand before the stock market opens on Friday

Here are five crucial points investors should keep in mind as they begin their trading day:

Recently, President Trump had a lengthy call with his Chinese counterpart, Xi Jinping, as the two nations are gearing up to restart trade discussions. Trump described the roughly 90-minute conversation as “very good” in a post on social media. In the past, his administration has accused Beijing of retracting commitments in a trade agreement, leading to worries of a potential trade ceasefire. Furthermore, China is encountering challenges with international students and issues related to U.S. policies on semiconductors. According to Chinese officials, Trump had initiated the call.

This Friday is the release of the monthly employment report. Economists predict an increase of about 125,000 jobs in May, which is significantly less than the 177,000 jobs added in April. That figure also stands in contrast to the yearly average of 144,000 jobs. “With expectations recalibrated lower, a reading near 100,000—while 125,000 is the consensus—might place us in a ‘stylized’ category,” said Julien Lefag, chief market strategist at Barclays Private Bank. “If the number comes in below 100,000, it may raise concerns about a potential recession. Conversely, stronger-than-expected figures could put upward pressure on [Treasury] yields, negatively impacting riskier assets.”

Recent job cuts are becoming quite pronounced across various corporations, including notable names like Amazon and Walmart. Procter & Gamble recently announced a reduction of 7,000 jobs, representing about 15% of its non-manufacturing workforce. Meanwhile, Citigroup plans to cut 3,500 jobs in China. This spate of announcements reflects a broader trend as businesses tighten their belts amid trade and policy uncertainties.