After turning in mixed performances over the two previous sessions, stocks may move to the downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.3 percent.
Concerns about the outlook for the U.S. economy may weigh on the markets after the Labor Department released a report showing employment rose by less than expected in the month of August.
The Labor Department said non-farm payroll employment climbed by 142,000 jobs in August compared to economist estimates for an increase of 160,000 jobs.
The report also said the increases in employment in June in July were downwardly revised to 118,000 jobs and 89,000 jobs, respectively, reflecting a net downward revision of 86,000 jobs.
Meanwhile, the Labor Department said the unemployment rate edged down to 4.2 percent in August from 4.3 percent in July.
The modest decrease, which was in line with estimates, came after the unemployment rate reached its highest level since October 2021.
Selling pressure may be somewhat subdued, however, as the weaker than expected job growth may lead to optimism about accelerated interest rate cuts by the Federal Reserve.
After ending Wednesday’s lackluster session narrowly mixed, the major U.S. stock indexes turned in another mixed performance during trading on Thursday. While the S&P 500 closed lower for the third straight session, the tech-heavy Nasdaq ended the day in positive territory.
The Nasdaq bounced back and forth across the unchanged line before eventually closing up 43.37 points or 0.3 percent at 17,127.66. Meanwhile, the S&P 500 fell 16.66 points or 0.3 percent to 5,503.41 and the Dow slid 219.22 points or 0.5 percent to 40,755.75.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index declined 0.7 percent, while China’s Shanghai Composite Index slumped by 0.8 percent.
The major European markets have also moved to the downside on the day. While the German DAX Index is down by 0.5 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both down by 0.2 percent.
In commodities trading, crude oil futures are rising $0.58 to $69.73 a barrel after edging down $0.05 to $69.15 a barrel on Thursday. Meanwhile, after climbing $17.10 to $2,543.10 an ounce in the previous session, gold futures are increasing $11.20 to $2,554.30 an ounce.
On the currency front, the U.S. dollar is trading at 142.48 yen versus the 143.45 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1131 compared to yesterday’s $1.1111.
Business News
U.S. Stocks May Move To The Downside Following Jobs Data
2024-09-06 12:55:10
