Stock futures are flat ahead of key employment report
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U.S. Stock Index futures fell during the overnight trade on Thursday, as Wall Street awaits the September Jobs Report.
Futures contracts linked to the Dow Jones Industrial Average gained 19 point. S&P 500 futures were up 0.06%, while Nasdaq 100 futures advanced 0.08%.
Stocks rose during regular tradingWashington struck a deal with China on Thursday raise the debt ceiling into December. For its third consecutive positive session, the Dow gained a little over 340 points (0.98%). The S&P 500 and Nasdaq Composite also advanced for a third day, gaining 0.83% and 1.05%, respectively. These three averages will finish the week green.
As the Federal Reserve slows its $120 billion per month bond-buying program, all eyes will be on Friday’s employment report. Dow Jones’ estimates suggest that economists anticipate the economy adding 500,000 jobs to its ranks in September. Only 89,050 jobs were added in August. 235,000 jobsThese numbers were substantially lower than 720,000, the consensus estimate.
According to the Department of Labor, Thursday’s total jobless claims from the previous week was 1.2 million 326,000It was. It was lower than what 345,000 economists expected. The number of continuing claims fell by 97,000 to 2.71million.
Edward Moya from Oanda is senior market analyst. He stated, “The final appetizer to Friday’s nonfarm payroll report was a positive weekly jobsless claims report.” As the US manages to control the spreading of delta variant, labor market recovery will continue to improve.
Market volatility around the debt ceiling was a hindrance, but there are still risks such as rising rates and accelerating inflation. UBS expects the 10-year Treasury yield to rise to 1.8% this year. It was at 1.57% Thursday.
The Federal Reserve received a note from clients stating that “a steadily improving US labor force market and strong US economic growth should give it the green light” to reduce its quantitative-easing (QE), program.
Wall Street prepares for the third quarter earnings season which begins next week. JPMorgan BlackRock, Delta, and Chase report on Wednesday. Other major banks will follow later in this week.
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