Overview
U.S. stock futures are indicating a positive start to the day as data is expected to reveal a slowdown in hiring, easing concerns about the Federal Reserve’s interest rate decisions.
Market Performance
- Dow Jones Industrial Average futures (YM00) have risen by 78 points, or 0.2%, to 34,869.
- S&P 500 futures (ES00) have gained 9 points, or 0.2%, to 4,525.
- Nasdaq 100 futures (NQ00) have increased by 12 points, or 0.1%, to 15,551.
On Thursday, the Dow Jones Industrial Average (DJIA) fell by 168 points, or 0.48%, closing at 34,722. The S&P 500 (SPX) declined by 7 points, or 0.16%, reaching 4,508. Meanwhile, the Nasdaq Composite (COMP) saw a gain of 16 points, or 0.11%, ending at 14,035.
Economic Data
Today, a series of important economic data will be released:
- Nonfarm payrolls data will be published at 8:30 a.m. Eastern Time, with expectations that 170,000 jobs were created in August. This would mark the weakest performance since December 2020 when 268,000 jobs were lost.
- The Institute for Supply Management’s manufacturing index will also be released.
- Additionally, monthly auto sales figures will be made available.
Analysis and Insights
Ahead of today’s heavy-hitting economic data, U.S. stocks experienced modest pressure. Inflation data remained mostly benign, but jobless claims raised concerns about a potential economic slowdown. Dollar General also issued a profit warning, indicating pressure on consumer spending.
Chief Market Analyst at KCM Trade, Tim Waterer, highlights the significance of the nonfarm payrolls data and its potential impact on the Federal Open Market Committee (FOMC). If the data confirms a trend of loosening in the U.S. job market, it could alleviate some inflation concerns.
International News
In China, the August Caixin manufacturing Purchasing Managers’ Index (PMI) exceeded expectations, reaching 51. This level indicates improving conditions. Additionally, the country reduced down-payment requirements on homes.
The Hong Kong market was closed due to storm-related concerns.