Major U.S. stock indexes were poised to open lower again Thursday as investors digest fresh labor market data ahead of tomorrow’s highly anticipated August jobs report.
Futures tied to the S&P 500 and Nasdaq 100 were down 0.1% and 0.3%, respectively, while those linked to the Dow Jones Industrial Average were down fractionally. The S&P 500 and the Nasdaq closed lower for the second straight day on Wednesday, led by a decline in shares of AI chipmaker Nvidia (NVDA) and other mega-cap technology stocks.
Big-tech stocks were mostly lower in premarket trading Thursday, with Nvidia down about 1% and Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Meta Platforms (META) also losing ground. Amazon (AMZN) shares were up about 1%.
U.S. stocks have gotten off to a sluggish start this month as concerns about the health of the economy have resurfaced. Manufacturing data and a report on job openings came in weaker than expected in recent days.
On Thursday, the monthly ADP employment report showed that private payrolls grew less than economists had expected in August, while weekly jobless clams numbers came in slightly lower than expected. The data provide further confirmation that the U.S. labor market is cooling but not deteriorating significantly.
Market participants are anxiously awaiting Friday’s release of the government’s jobs report for August, after last month’s report showed a surprising increase in the unemployment rate and sent markets reeling. The Federal Reserve has said it is focused on the labor market as it considers cutting its benchmark lending rate for the first time in four years. Fed Chair Jerome Powell has signaled that rate cuts could come as soon as the mid-September meeting of the central bank’s policy committee, but has said that incoming data will drive the decisions on the pace and depth of the easing.
The yield on 10-year Treasurys, which is sensitive to expectations around interest rates, fell to 3.73% Thursday morning, its lowest level in a month. Gold futures were up about 1% to around $2,550 while bitcoin slumped to its lowest level in a month, around $56,500.
Stock Futures Point to Lower Open for Major Indexes
20 minutes ago
Futures tied to the Dow Jones Industrial Average were down fractionally.
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S&P 500 futures were down 0.1%.
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Nasdaq 100 futures were down about 0.3%.
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