(Bloomberg) — Stock futures fluctuated as traders prepared for the release of unemployment data, seeking clues about whether Federal Reserve policies are cooling the labor market too much.
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Stocks struggled to find firm ground in early trading after Wall Street was again marked by volatility. The latest jobs report, which showed a sharp drop in hiring and an unexpected rise in unemployment, heightened concerns about the economy. That nervousness has fueled speculation that the Fed will need to take more aggressive action.
“The focus today is on the unemployment numbers, and a better-than-expected number will help to gradually ease recession fears,” said Tom Essaye of The Sevens Report. “On the other hand, if claims rise above 250,000, expect further recession worries and a corresponding (lower) reaction in stocks.”
There’s still a lot going on in corporate earnings, too. Eli Lilly & Co. soared after the company raised its 2024 revenue forecast for the second time this year on the back of its successful weight-loss drug Zepbound. Under Armour Inc. reported results that beat analysts’ expectations and raised its forecast as the sporting goods brand restructures under returning founder Kevin Plank.
Yields on US government bonds also remained little changed ahead of the unemployment announcements. After that, the market will have to cope with a sale of 30-year bonds worth $25 billion.
Some of the key market movements:
Shares
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S&P 500 futures rose 0.1% (as of 8 a.m. New York time)
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Nasdaq-100 futures rose 0.1 percent
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Futures on the Dow Jones Industrial Average fell 0.1 percent
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The Stoxx Europe 600 lost 0.8 percent
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The MSCI World Index fell by 0.2 percent
Currencies
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The Bloomberg Dollar Spot Index fell 0.1%
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The euro was little changed at 1.0930 dollars
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The British pound remained almost unchanged at USD 1.2696.
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The Japanese yen rose 0.3% to 146.17 per dollar
Cryptocurrencies
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Bitcoin rose 4% to $57,341.16
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Ether rose 4.2% to $2,448.89
Tie up
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The yield on 10-year government bonds fell one basis point to 3.93%.
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The yield on German 10-year bonds fell by three basis points to 2.23 percent
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The yield on British 10-year bonds remained almost unchanged at 3.94%
raw materials
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West Texas Intermediate crude oil remained barely unchanged
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The spot price of gold rose 1.2 percent to $2,411.65 per ounce.
This story was created with the assistance of Bloomberg Automation.
– With support from Robert Brand, John Viljoen, Divya Patil and Richard Henderson.
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