A slip in stock futures after strong jobs data is likely to keep the central bank in hiking mode

Traders work on the floor of the New York Stock Exchange (NYSE) on November 11, 2022 in New York City.

Spencer Platt | Good pictures

Stock futures fell on Thursday after private payrolls data showed the labor market remained strong amid Federal Reserve interest rate hikes to control inflation.

Futures for the Dow Jones industrial average fell 158 points, or 0.47%. S&P 500 Nasdaq 100 futures fell 0.48% and 0.48%, respectively.

US stock futures fell after AEmployers added 235,000 people, according to the DP Private Payroll report jobs December, Above economists’ estimates. Wages also rose more than expected, another sign that the labor market is hot.

“That’s what the Fed continues to emphasize, why they want to keep hiking rates and keep raising them throughout the year,” said Peter Bookvar, chief investment officer at Bleakley Financial Group.

Movements a Tough trading session Traders sifted through a mixed bag of economic data.

November’s Job Openings and Labor Turnover, or JOLTS, report showed the job market remained strong, reinforcing concerns that the Fed may continue to raise interest rates as long as the labor market remains warm. But the ISM manufacturing index showed the sector contracting after 30 months of expansion, which investors saw as a positive indicator that earlier rate hikes had had the intended effect of cooling the economy.

Meanwhile, the minutes of the central bank’s December meeting showed that the central bank remained High interest rates are promised “for a while”.

Investors have “more fresh wounds” ahead of 2022, which brought the worst year for the stock market since 2008, said Keith Buchanan, portfolio manager at GLOBALT Investments. He said investors are trying to balance what each new economic data or central bank commentary might mean with broader concerns about the future.

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“Every day that goes by, we get a data point that’s moving in the right direction, and that’s positive,” Buchanan said. “But it’s quickly followed by an awe at how sensitive and tender this moment is.”

Investors will look for more data on jobs, the trade deficit and business activity on Thursday. Feed speakers Raphael Bostick And James Bullard Both are about to talk.

On Friday, investors will review the December jobs report for updated data on employment and hourly wages. The report is likely to impact the market as it could have a major impact on the central bank’s next moves. Investors don’t want to see big gains in wage growth, which could mean higher inflation.

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