Market Outlook: Major Indexes Poised to Open Lower Ahead of Key Jobs Data
U.S. stock indexes were set to open lower on Thursday as investors parsed fresh labor market data ahead of the highly anticipated August jobs report. Futures tied to the S&P 500 and Nasdaq 100 were down 0.1% and 0.3%, respectively, while Dow Jones Industrial Average futures were slightly negative.
Tech Weakness Continues: Nvidia and Other Mega-Caps Decline
Big-tech stocks remained under pressure, with Nvidia down about 1% in premarket trading. Other tech giants like Apple, Microsoft, Alphabet, and Meta Platforms also saw declines, continuing the trend from Wednesday’s session. However, Amazon shares bucked the trend, rising about 1% in early trading.
Economic Concerns Weigh: Sluggish Start to September Amid Weaker Data
U.S. stocks have struggled at the start of September as concerns over economic health have resurfaced. Recent manufacturing data and job openings reports came in weaker than expected, fueling fears of a slowing economy. On Thursday, the ADP employment report showed slower-than-expected growth in private payrolls for August, although weekly jobless claims were slightly lower than forecasted. This mixed data suggests the labor market is cooling but not significantly weakening.
Eyes on the Fed: Markets Await Friday’s Jobs Report and Potential Rate Cuts
Investors are keenly focused on Friday’s government jobs report for August, which follows last month’s surprising increase in the unemployment rate. The Federal Reserve has indicated that the labor market will be a key factor in its decision-making process, with Fed Chair Jerome Powell hinting at possible rate cuts as soon as mid-September, depending on incoming economic data.
Market Moves: Treasury Yields, Gold, and Bitcoin
The yield on 10-year Treasurys, sensitive to interest rate expectations, dropped to 3.73%, its lowest level in a month. Gold futures rose about 1% to around $2,550, reflecting investor caution, while bitcoin fell to its lowest level in a month, trading around $56,500.
