Futures monitoring The major Wall Street indexes increased on Friday as investors awaited an important jobs report to check for any indications of a slowing labor market, which is a major determinant in determining the direction of interest rates.
Growth In Job Sector
The more thorough non-farm payrolls data on Friday is anticipated to indicate that, after a slew of conflicting jobs reports throughout the week, U.S. job growth moderately slowed in September, rising by 170,000 after surging by 187,000 in August.
The Federal Reserve’s aggressive rate-hike campaign has been able to hold off on the labor market, which has investors concerned that the central bank would maintain its tighter monetary policy for a longer period of time in its battle against inflation.
In addition to the Labor Department’s report likely showing continued robust pay growth, the jobless rate is predicted to have decreased from a 1-1/2 year high.
According to Marios Hadjikyriacos, senior investment analyst at forex broker XM, “it appears that the U.S. labor market continues to fire on most cylinders, and if that’s confirmed by the official employment readings today, it could light another fire under Treasury yields and, by extension, help the dollar to resume its uptrend.”
Source: mirror
According to traders and CME’s FedWatch tool, the likelihood of interest rates being steady in November and December was around 82% and 64%, respectively.
Officials at the Federal Reserve said Thursday that they were less concerned that the recent increase in yields may jeopardize the economy’s “soft landing” and that it might even assist the central bank fight inflation.
With September consumer price inflation and producer pricing index readings due the next week, data would once again take center stage.
The forthcoming quarterly earnings season, which starts next week with major banks including JPMorgan Chase, Wells Fargo, Citigroup, and asset management BlackRock reporting, will also be a point of emphasis.
Decline In Premarket Trading
At 7:00 a.m. ET, Nasdaq 100 e-minis were up 43.5 points, or 0.29%, while S&P 500 e-minis were up 10.25 points, or 0.24%. The Dow was up 74 points, or 0.22%, at this time.
After lowering the cost of its Model 3 and Model Y automobiles in the United States, EV manufacturer Tesla experienced a 1.1% decline in premarket trading.
Exxon Mobil dropped 1.6% after Reuters was informed by sources that the biggest oil producer in the United States was in advanced negotiations to buy Pioneer Natural Resources. The price of Pioneer rose 12.1%.
Levi Strauss lost 1.3% after the manufacturer of denim clothes lowered its yearly forecasts for the second time as a result of missing sales projections for the third quarter.
