Wall Street is gearing up for some intense activity as Dow Futures traded in green ahead of the release of key economic data.
Futures for the S&P 500, Nasdaq 100, and Dow all saw modest gains early Thursday, with the S&P and Dow up 0.1% and the Nasdaq rising 0.2%.
Meanwhile, bond yields edged lower with the 10-year Treasury yield dipping to 4.26% and the 2-year fell to 3.77%, both down by 2 basis points.
On Wednesday, US stocks ended mostly higher, as optimism over a positive trade development outweighed a surprise decline in private sector job growth for June.
The volatility in Dow Futures comes ahead of the vote in the United States House of Representatives over Donald Trump’s sweeping tax bill.
Dow Futures steady before jobs data
The big focus today is the June US jobs report from the Bureau of Labor Statistics.
Economists are predicting a slowdown in hiring, with around 120,000 jobs expected to be added, down from 139,000 in May.
The unemployment rate is also forecast to edge up slightly to 4.3%.
The fresh economic data came as the investors faced a surprise on Wednesday as payrolls processing firm ADP released private sector jobs data.
Private payrolls saw an unexpected drop of 33,000 jobs in June, marking the first decline since March 2023, according to the ADP report.
The figure came in well below expectations, as economists surveyed by Dow Jones had projected an increase of 100,000 jobs.
Adding to the surprise, May’s job growth was revised downward to 29,000 from the originally reported 37,000, signaling a softer-than-expected trend in the labor market.
ADP data shows that most of June’s job losses came from the service sector, especially in professional and business services and health and education.
Professional and business services saw a steep drop of 56,000 jobs, while health and education roles declined by 52,000, highlighting surprising weakness in areas that are typically more stable.
Asian markets remain muted
Global markets were cautious on Thursday as investors kept a close eye on key economic developments, particularly the upcoming July 9 tariff deadline set by US President Donald Trump.
Asian markets were mixed with Japan’s Nikkei managing a modest 0.1% gain, snapping a two-day losing streak, while South Korea’s Kospi surged 1.34% to a four-year high, boosted by strong tech and steel stocks.
On the other hand, Hong Kong’s Hang Seng Index fell 0.63%, with broader weakness across sub-indices.
In China, sentiment improved after the US eased export restrictions, helping the CSI 300 rise 0.62%. Australia’s ASX 200 traded flat.
Gains in sectors like pharma, auto, and consumer durables helped limit losses, but metals, real estate, and PSU banks dragged the market down.
Investors in Asia are also watching Wall Street closely as it heads into a key vote on President Trump’s tax bill.
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