E-mini S&P futures experienced a sharp reversal, closing down nearly 2.5% near the 7,400 level and snapping a notable nine-week upward streak. This significant market turn was driven by a much stronger-than-expected U.S. jobs report, shifting the broader macroeconomic conversation toward potential central bank rate hikes before year-end. In response to the equity sell-off, market volatility spiked to its highest level since early April, demonstrating its classic inverse relationship to the underlying equity indices. Looking ahead to next week, market participants will focus on key inflation updates via the upcoming CPI and PPI reports, as well as the University of Michigan consumer sentiment data. Notably, central bank officials will enter a speaker blackout period ahead of the June FOMC meeting, leaving the upcoming economic data prints to speak entirely for themselves.
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