September 25, 2023

With Nonfarm Payrolls in The Focus, Dow Futures Soar 205 Points

Dow Futures rose 205 points at 11:00 GMT (7:00 ET). The increase was 0.6% in total.S&P 500 Futures climbed 30 points, or 0.8%, during the trade. Nasdaq 100 Futures rose 95 points or 0.9%.

The Major Stock Indexes Ended the Day Downward

All major market indices finished Thursday in the red. This is because the U.S. Federal Reserve recently raised its interest rates by 75 basis points. As a result, inflation needed further raises, the Fed said. This dashed hopes that the Fed’s fast rate hikes would stop.

Dow Jones Industrial Average dropped fewer than 150 points. This decline represents 0.5%. The highly weighted Nasdaq Composite sank 1.7%, while the S&P 500 fell 1.1%. The chance of a weekly loss for any of the three indexes has risen. S&P lost 4.6%, Nasdaq 6.8%, and Dow 2.6%. Before Friday’s trading begins, they are on track for their worst week since January.

Attention On Nonfarm Payrolls

Next up is the 8:30 am—ET (12:30 pm GMT) October employment report. Again, the report would disclose economic data. The information will also show the Fed’s remaining inflation-fighting efforts. Analysts say 200,000 nonfarm payroll jobs were added last month. This would be a decrease from the previous month’s 263,000.

Inflation-related average hourly earnings are expected to rise. The anticipated increase is 0.3%. Corporate quarterly outcomes are projected to continue. Next week, prominent retailers will reveal their season prospects. Since most IT businesses have revealed their earnings, this seems likely.

The quarterly earnings reports from several companies are anticipated to be released on Friday. These companies include the sizable electric utility Duke Energy (NYSE: DUK), the entertainment company AMC Networks, and the candy producer Hershey (NYSE: HSY) (NASDAQ: AMCX).

Trends In the Market

Block (NYSE: SQ) shares rose 14% premarket. The payment platform reported higher third-quarter revenue late Thursday. Block’s Cash App fueled the increase. Carvana (NYSE: CVNA) shares fell 7% premarket. The online used vehicle dealer’s weak third-quarter profitability opened the market. After the pandemic, used car sales dropped, according to the company.

Oil prices rose on Friday. A falling Dollar and reports that China would remove COVID-19 regulations drove the hike. An examination of Baker Hughes and CFTC oil rig data will occur later today. After that, traders will wait until Western nations set a price cap on Russian goods.

This strategy reduces money going to Moscow while keeping it accessible to consumers.US crude oil prices rose 3.3% to $91.08 at 7:00 am ET. Brent barrels rose 2.9% to $97.38. Despite recession fears, both benchmarks are likely to rise this week.

In addition, U.S. oil stocks are falling, indicating supply constraints. Gold futures increased 1.4% to $1,653.45 per ounce. EUR/USD rose 0.4% to 0.9792.



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