Market Expectations for Interest Rate Reduction Fade in July
In light of an exceptionally strong employment report for June, market participants are starting to rethink their expectations regarding interest rate cuts from the Federal Reserve this month.
Many investors are hopeful that the Fed could make a move soon regarding interest rates.
Before the employment figures were released, traders had estimated a 25% chance that the central bank would lower its benchmark rate during the upcoming policy meeting on July 30. However, following the labor data, that likelihood has dropped to below 7%.
For investors, these employment numbers signal robust consumer spending and positive corporate outcomes, which is undoubtedly good news. However, the ongoing strength of the economy could keep high interest rates in place, especially since inflation continues to surpass the Fed’s targets.
Fed officials have indicated that they need to analyze more data on how central banks impact the economy, particularly concerning inflation, before making any policy adjustments.
Watching Center Levels After 40% Drop on Wednesday
Centene (CNC) saw a significant rise in its stock on Wednesday, after hitting an eight-year low. The company managed to regain 40% as it issued a revised outlook for the year due to new data about health costs and membership registration.
Focusing on Medicaid and Affordable Care Act Insurance, Centene revealed that growth has slowed more than anticipated and patient health issues have risen considerably. This has led to expectations of less federal reimbursement and higher costs, with projections for 2025 earnings around $1.8 billion, equating to roughly $2.75 per share.
The stock has lost nearly two-thirds of its value since reaching a record high in August 2022, and it has dropped about 44% since the start of 2025 as the company grapples with escalating health costs and declining enrollments.
In Thursday’s pre-market trading, Centene’s stock slightly increased by 1% to around $34.
Since its all-time high in August 2022, Centene’s shares have been on a continuous downward trend, and the losses have intensified recently. This has pushed the stock below the closely watched 200-month moving average, indicating a challenging market situation.
Investors will need to monitor critical support levels around $27 and $17 and keep an eye out for resistance around $42 and $74.
Datadog’s Surge as a Software Stock to Join the S&P 500
Datadog (DDOG) gained attention during Thursday’s trading session following S&P Global’s announcement that the software company would be added to the S&P 500 on July 9.
There was a benchmark index shift when Hewlett Packard Enterprise (HPE) completed its acquisition of fellow S&P 500 member Juniper Networks.
Being included in the S&P 500 could increase Datadog’s stock as it attracts new investors and becomes part of various index funds that track component companies.
Recently, Datadog saw an increase of 9%, bouncing back to positive territory for the year, recovering much of the losses it faced since February.
Meanwhile, shares of Robinhood (Hood) declined nearly 3% in pre-market trading after speculation peaked about their position in the market on Wednesday. Robinhood is set to replace Juniper Networks in the S&P 500, and in May, Coinbase Global (Coin) was added to the index following a merger with Capital One Financial Services (COF).
Major Index Futures Are Higher Before Job Report
Futures linked to major US indexes were slightly up—less than 0.1%—as the market awaited the release of the June employment report from the Labor Bureau.
Dow Jones Industrial Average Futures
S&P 500 Futures
Nasdaq 100 futures
