After showing a lack of direction over the two previous sessions, stocks are likely to show a strong move to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.7 percent.
The futures climbed more firmly into positive territory following the release of a closely watched Labor Department repot showing much stronger than expected job growth in the month of September.
The Labor Department said non-farm payroll employment jumped by 254,000 jobs in September after climbing by an upwardly revised 159,000 jobs in August.
Economists had expected employment to rise by 140,000 jobs compared to the addition of 142,000 jobs originally reported for the previous month.
The report also showed the unemployment rate edged down to 4.1 percent in September from 4.2 percent in August. Economists had expected the unemployment rate to remain unchanged.
The stronger than expected jobs growth is likely to help ease concerns about the economic outlook, although it may also ease optimism the Federal Reserve will continue to aggressively lower interest rates in the coming months.
Following the jobs data, CME Group’s FedWatch Tool is indicating a 91.2 chance the Fed will lower rates by a quarter point in November and just a 8.8 percent chance of another half point rate cut.
Following the lackluster performance seen during trading on Wednesday, stocks continued to experience choppy trading during Thursday’s session. The major averages once again spent the day bouncing back and forth across the unchanged line.
The major averages eventually finished the day modestly lower. While the Nasdaq edged down 6.65 points or less than a tenth of a percent to 17,918.48, the S&P 500 slipped 9.60 points or 0.2 percent to 5,699.94 and the narrower Dow fell 184.93 points or 0.4 percent to 42,011.59.
In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance on Friday. Japan’s Nikkei 225 Index rose by 0.2 percent and Hong Kong’s Hang Seng Index surged by 2.8 percent, while Australia’s S&P/ASX 200 Index slid by 0.7 percent.
The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index is down by 0.3 percent, the German DAX Index is up by 0.5 percent and the French CAC 40 Index is up by 0.8 percent.
In commodities trading, crude oil futures are climbing $0.50 to $74.21 a barrel after soaring $3.61 to $73.71 a barrel on Thursday. Meanwhile, after rising $9.50 to $2,679.20 an ounce in the previous session, gold futures are falling $16.40 to $2,662.80 an ounce.
On the currency front, the U.S. dollar is trading at 148.43 yen versus the 146.93 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0965 compared to yesterday’s $1.1013.
Business News
U.S. Stocks May See Initial Strength Following Upbeat Jobs Data
2024-10-04 12:55:53
