Kingsview Asset Management CIO Scott Martin and Geltrude & Company founder Dan Geltrude on US stock markets, returning to negative territory after a speech by Federal Reserve Chairman Jerome Powell on inflation.
US stock futures are trading lower before the February employment report was released, as bond yields remain high.
The main future indices suggest a decrease of 0.4% when the last trading session of the week begins on Wall Street.
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US payrolls are expected to show a considerable increase in non-farm hiring in February compared to the previous month.
The decline in COVID-19 cases and consumer spending driven by government aid checks contributed to a tenacious recovery.
Economists predicted that job growth reached 182,000 last month, according to Refinitiv.
US WORK GROWTH IS PROBABLY INCREASED IN FEBRUARY IN THE RECOVERY OF SLUMP
The unemployment rate is expected to remain stable at 6.3%.
Investors were disappointed by Federal Reserve Chairman Jerome Powell’s comments on Thursday when he said inflation would likely rise in the coming months, although he warned that the increase would be temporary and it would not be enough for the Fed to change policies. low interest rates set to help the economy recover from the pandemic.
POWELL SAYS THAT INFLATION CAN SEE TEMPORARY POINT, BUT FED PLEDGES WILL BE PATIENT
Powell did not indicate that the Fed could try to contain rising bond yields, which tend to attract stock money for less risky bonds.
The yield on the 10-year Treasury bill jumped to 1.54% during Powell’s observations, from 1.47% just before, a significant move. At the beginning of the year, the yield was traded at 0.93%. On Friday, it was at 1.56%.
In Europe, London’s FTSE fell 0.5%, Germany’s DAX fell 0.9% and France’s CAC fell 0.9%.
In Asia, Japan’s Nikkei 225 lost 0.2%, Hong Kong’s Hang Seng gave up 0.5% and China’s Shanghai Composite index was less than 0.1% below.
Chinese Prime Minister Li Keqiang announced an annual growth target of “more than 6%” at the opening of the annual session of the National People’s Congress.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 30924.14 | -345.95 | -1.11% |
| SP500 | S&P 500 | 3768.47 | -51.25 | -1.34% |
| I: COMP | NASDAQ COMPOUND INDEX | 12723.471845 | -274.28 | -2.11% |
On Thursday, the S&P 500 fell 1.3% to 3,768.47, its third consecutive loss. He fell short in the red for the year and is on track for his third consecutive weekly loss.
The Dow Jones Industrial Average lost 1.1% to 30,924.14. The Nasdaq compound fell 2.1%, to 12,723.47, in a retraction that brought the high-tech index to red in the year.
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In the energy trade, the price of US crude oil rose $ 1.40 to $ 65.23 a barrel in e-commerce on the New York Mercantile Exchange. It jumped 4.2% on Thursday after OPEC members agreed to maintain most of the existing cuts in oil production. Brent oil, the international standard, rose $ 1.60 to $ 68.36 a barrel.
The Associated Press contributed to this article.