Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow is expected to recover after Thursday’s strong liquidation
Traders on the floor of the New York Stock Exchange.
Source: NYSE
Dow futures jumped on Friday before the government’s latest job report and after a sharp fall on Wall Street. Federal Reserve Chairman Jerome Powell failed on Thursday to assure investors that the central bank would keep rising bond yields and inflation under control. The Dow Jones index closed 345 points, or 1.1%, down on Thursday in a wild session that saw the average of 30 shares fall more than double in one phase. The S&P 500 fell 1.3%. Nasdaq was the big loser on the day, sinking more than 2% and closing almost 10% of the February 12 record. The index was also negative in the year. At the close of Thursday, the Dow and the S&P 500 maintained their lean 2021 gains.
2. Employers probably created more jobs in February
The Department of Labor is due to issue its February employment report at 8:30 am (Eastern Time). Economists expect 210,000 non-farm payrolls to be added last month, compared to just 49,000 in January. The country’s unemployment rate in February is expected to remain stable at 6.3%, although in the coming months that level is expected to continue to fall as more people are vaccinated against Covid-19 and jobs in the service sector return.
3. The 10-year Treasury yield is above 1.5% before the employment report and after Powell
Federal Reserve Chairman Jerome Powell speaks during a Senate Banking Committee hearing in Capitol Hill, Washington, December 1, 2020.
Al Drago | Pool | Reuters
The 10-year Treasury yield rose on Friday, trading at around 1.56%, advancing towards last week’s biggest year-on-year rise. Yields have increased rapidly since the end of January, fueling fears of inflation. Powell has done little to allay these concerns, recognizing that he sees some inflationary pressures ahead. However, he also said that price increases are unlikely to be enough to encourage the Fed to raise interest rates. The market expected Powell to address the recent rise in bond yields more directly, with a possible nod to adjust the Fed’s asset purchase program.
4. Senate brings Covid relief bill votes closer after Republican Party delay
National Guard members gather in front of the US Capitol in Washington, DC, USA, on Thursday, March 4, 2021.
Stefani Reynolds | Bloomberg | Getty Images
The Senate debate over the Democrats’ $ 1.9 trillion coronavirus relief package is set to continue as lawmakers try to meet a deadline to prevent an increase in federal unemployment benefits from expiring. The Senate voted Thursday to start the debate on the rescue package, setting the stage for its approval this weekend under rules that allow approval by a simple majority. Vice President Kamala Harris had to break a 50-50 tie after a party line vote in the equally divided chamber. As soon as the Senate started considering the bill, Senator Ron Johnson, R-Wis., Forced city officials to start reading the entire 628-page measure aloud.
5. Connecticut between states easing some virus-related restrictions
Pharmaceutical Madeline Acquilano inoculates public school security officer Victor Rodriguez with the Johnson & Johnson Covid-19 vaccine at Hartford Hospital in Hartford, Connecticut, on March 3, 2021.
Joseph Prezioso | AFP | Getty Images
Connecticut will relax Covid’s many mitigation restrictions in two weeks for business, theater, churches and travel. But Democratic Governor Ned Lamont said on Thursday that the state mask’s mandate would remain in effect. Connecticut is among the many states that are easing virus restrictions, despite repeated warnings from health officials that opening too fast could risk another lethal wave in the United States. like your Covid restrictions.
– The Associated Press contributed to this report. Follow all developments on Wall Street in real time with the CNBC Pro live markets blog. Get the latest pandemic news with our coronavirus blog.