Last Updated: 4:00PM EST
Stock indices finished today’s trading session in the green after today’s strong jobs report. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.28%, 1.11%, and 0.8%, respectively.
In March, U.S. nonfarm payrolls surged by 303,000 jobs, far surpassing the anticipated 212,000 and accelerating from February’s results of 270,000. This growth pushed the unemployment rate slightly down to 3.8%, with the labor force participation rate rising to 62.7%. This means that the number of active job-seekers is increasing.
As a result, Federal Reserve officials came out to comment on potential interest rate policies. In fact, Federal Reserve Governor Michelle Bowman and Dallas Fed President Lorie Logan believe that it may be too soon to consider cutting rates. They mentioned how inflation can still stall or reverse.
This is especially true as the economy continues to see job growth along with an increase in average hourly earnings. Indeed, workers’ earnings grew by 0.3% month-over-month and 4.1% year-over-year. While good for individual workers, it adds to employers’ expenses, which could continue pushing prices higher.
First Published: 3:00 AM EST
U.S. futures traded higher on Friday morning. Investors are now looking forward to key US monthly jobs report after yesterday’s sharp sell-off in all three major indices – the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA). Futures on the Nasdaq 100, S&P 500, and Dow Jones were up by about 0.2%, 0.19%, and 0.11%, respectively, at 2:37 a.m. EST, April 5.
On Thursday’s regular trading session, the Dow Jones fell 1.35% and marked its steepest one-day drop since March 2023. Similarly, the S&P 500 and Nasdaq 100 declined by 1.23% and 1.55%, respectively.
This broad market downturn is attributed to two factors. Firstly, higher oil prices reignited concerns about inflation. Secondly, recent commentaries from the Federal Reserve Presidents cast doubt on the possibility of future interest rate reductions.
Investors are eagerly awaiting the release of the Nonfarm Payrolls and Unemployment data today. These reports provide insights about the strength of the labor market. Economists expect an increase of 200,000 jobs in nonfarm payrolls for March, compared to an increase of 275,000 in February. The unemployment rate is expected to have declined by one basis point to 3.8% in March. Another important data point that will be released today is the Average Hourly Wages, which is expected to have risen by 0.3% from the previous month.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.32%. At the same time, WTI crude oil futures trended higher, hovering near $86.89 per barrel as of the last check, with support from OPEC+ output cuts, supply disruptions, and a solid demand outlook in the U.S.
Elsewhere, European indices are expected to open mixed today as investors look forward to evaluating the Eurozone’s Construction and Retail sales data, as well as the U.K. House Prices report.
Asia-Pacific Markets Traded Mixed on Friday
Asia-Pacific indices were mixed in today’s session as recent commentary by U.S. Federal Reserve officials heightened concerns about the possibility of interest rates remaining higher for an extended period.
Hong Kong’s Hang Seng index was up 0.01% at the time of writing. At the same time, Japan’s Nikkei and Topix closed lower by 1.96% and 1.08%, respectively.
Investors should note that the Chinese markets remain closed for a public holiday.
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