Wall Street stock futures fell Friday after the widely anticipated US labor market report was higher than expected.
Contracts tracking the S&P 500 index fell 0.6% after data showed US employers added 263,000 new jobs in September. That was down from his 315,000 in August, but above his 250,000 projection of economists surveyed by Reuters.
Contracts tracking the tech-focused Nasdaq 100 gauge, which is more sensitive to changes in interest rate expectations, fell 1.2% ahead of the opening bell in New York.
The Jobs report has been under close scrutiny in recent months for clues as to the future direction of US monetary policy. Labor market temperatures are expected to have a significant impact on Federal Reserve decision-making, and signs of easing are usually expected to result in central banks taking a less aggressive approach to tightening monetary policy. is increasing.
The Federal Reserve (Fed) has hiked interest rates to a whopping 0.75% in three consecutive meetings in an effort to curb inflation.
In Europe, the regional Stocks Europe 600 stock gauge fell 0.3% after the release of US employment data.
Treasury prices also fell after Friday’s data release, with the 10-year Treasury yield rising 0.06 points to 3.88%. His 10-year yield in the UK rose 0.05 points to 4.21%.
Average US hourly earnings rose 0.3% month-on-month. This is in line with what economists had expected and was the same increase as the previous period.
“[This] Wage inflation is arguably the most relevant part of the market jobs report as it is where secondary effects occur and risks creating persistently elevated inflation,” ING analysts said. said prior to release.
The jobs data followed other reports earlier this week that suggested a cooling in the US labor market. Thursday’s figures showed that the first unemployment claims in the US exceeded expectations in the week ending Oct. 1.
The dollar gained 0.2% against a basket of six currencies.
Ahead of the announcement, some investors said it was too early to expect a change in policy from the Fed.
“It’s too early to expect a turnaround at the Fed level,” said Gergely Majoros, a member of Carmignac’s investment committee. “The bar is so high. We need a weaker labor market, lower inflation, market stress, or some kind of mishap. We’re not there yet.”
The pound fell 0.2% against the dollar, trading at $1.114 after falling in the previous two sessions. The currency is well above Prime Minister Kwasi Kwarten’s record low of $1.035, which fell on Sept. 26 after his “mini” budget.
https://www.ft.com/content/7160e81d-d6bf-4a4a-b02e-a25f15b01474 Stocks and bonds prices fall after widely anticipated US jobs report