Last Updated: 4:04 PM EST
Stock indices finished today’s trading in the red after a fresh round of economic data. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 2.69%, 1.73%, and 1.01%, respectively. Earlier today, the Bureau of Labor Statistics released its U.S. Nonfarm Payrolls report. In August, employers added 142,000 jobs compared to July’s revised gain of 89,000. However, this was below the 164,000 jobs economists had anticipated. Interestingly, though, the unemployment rate decreased to 4.2% from 4.3% in the previous month. This was in line with expectations.
As a result of today’s data, John Williams, President of the New York Federal Reserve, said that it is time to start lowering interest rates since the economy doesn’t need such a restrictive policy anymore. Indeed, he feels more confident now that inflation is heading toward the Fed’s 2% target and expects inflation to be around 2.25% this year and closer to 2% by 2025.
Williams also noted that today’s jobs report shows the economy and labor market are slowing down. Nevertheless, he stressed that things are still uncertain and depend on economic changes.
First Published: 2:54 AM EST
U.S. futures were mixed on Friday morning as investors looked ahead to the release of a crucial jobs report to gain insight into the health of the labor market. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were down 0.46%, and 0.14%, respectively, at 2:06 a.m. EST, September 6, while the Dow Jones Industrial Average (DJIA) was up 0.05%.
All the major indices are set to finish the holiday-shortened trading week in the red. So far this week, the Nasdaq Composite, the S&P 500, and the Dow Jones have declined 3.3%, 2.6%, and 1.9%, respectively. Rising concerns about the U.S. economy and volatility in tech stocks, led by a 10.2% decline in Nvidia (NVDA), have weighed on U.S. stocks this week.
In today’s economic reports calendar, investors are awaiting the release of August’s Nonfarm Payrolls and Unemployment Rate data points. Economists predict an increase of 161,000 jobs in nonfarm payrolls and a slight dip in the unemployment rate to 4.2%.
These reports will be closely analyzed by investors, as recent economic indicators have hinted at a potential slowdown. The key focus will be on how this data might impact the Federal Reserve’s future monetary policy decisions.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 3.71% at the time of writing. Also, the WTI crude oil futures are trending lower, hovering near $69.07 per barrel as of the last check.
Elsewhere, European markets are expected to open lower on Friday as investors brace for an important economic report from the U.S.
Asia Pacific Markets Traded Lower on Friday
Asia-Pacific markets traded in the red today as traders were cautious ahead of a key U.S. jobs report. Further, markets reacted to Japan’s disappointing household spending data for July, which rose 0.1% year-over-year in real terms but fell short of the anticipated 1.2% growth.
At the time of writing, China’s Shanghai Composite and Shenzhen Component indices were down 0.46% and 1.21%, respectively. Moreover, Japan’s Nikkei and Topix indices dropped 0.78% and 1.08%, respectively.
Investors should note that Hong Kong has issued a typhoon signal due to the threat of Super Typhoon Yagi, leading to the closure of its market today.
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