Last Updated: 4:08 PM EST
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Stock indices finished today’s trading session in the red. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 2.38%, 1.84%, and 1.51%, respectively. Earlier today, the Bureau of Labor Statistics released its U.S. Nonfarm Payrolls report. In July, employers added 114,000 jobs compared to June’s revised gain of 179,000, which was way below the 176,000 jobs economists had anticipated. Adding to the negativity, the unemployment rate unexpectedly increased to 4.3% from 4.1% in the previous month, which stoked recession fears among investors.
Interestingly, traders are now anticipating a 50 basis-point rate cut in September instead of a 25 basis-point one. In fact, the implied probability is now 72.5% versus last week’s probability of 11.5%, according to the CME FedWatch tool. This is a huge shift that demonstrates the market’s current level of panic.
First Published: 2:49 AM EST
U.S. futures edged lower on Friday morning as investors digested weak results from major technology companies, including Amazon (AMZN). Also, investors are awaiting today’s key job data to assess the U.S. economy’s health. The report will be closely analyzed by traders, as recent U.S. manufacturing activity data raised concerns about the economy’s health. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) were down by about 1.52%, 0.88%, and 0.52%, respectively, at 2:35 a.m. EST, August 2.
In yesterday’s regular trading session, both the S&P 500 and the Nasdaq Composite indices declined by 1.4% and 2.3%, respectively. Also, the Dow Jones index closed lower by 1.2%. It is worth highlighting that the sell-off in chipmakers, such as Nvidia (NVDA), Broadcom (AVGO), Advanced Micro Devices (AMD), and Micron (MU), drove the decline.
In terms of major after-market action, Amazon was down about 7% after reporting mixed Q2 results and providing weak guidance. Moreover, Intel stock (INTC) plunged over 22% following the announcement of layoffs and the suspension of dividend payments.
In today’s economic reports calendar, investors are awaiting the release of last month’s Nonfarm Payrolls and Unemployment Rate data points. Economists expect nonfarm payroll to increase by 185,000 jobs in July and the unemployment rate to hold steady at 4.1%.
On the earnings front, oil giants Chevron (CVX) and Exxon Mobil (XOM) are slated to report their results today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 3.96% at the time of writing. Also, the WTI crude oil futures are trending higher, hovering near $76.86 per barrel as of the last check.
Elsewhere, European markets are expected to open lower today as investors assess the Bank of England’s decision to lower interest rates for the first time since 2020.
Asia Pacific Markets Traded Lower on Friday
Asia-Pacific markets traded in the red today. Japanese stocks led the decline, hitting their lowest levels in six months, as weak U.S. economic data raised fears of a slowdown.
At the time of writing, Hong Kong’s Hang Seng index was down by 2.21%. Similarly, China’s Shanghai Composite and Shenzhen Component indices declined by 0.75% and 1.3%, respectively. Further, Japan’s Nikkei and Topix indices traded lower by 5.87% and 6.14%, respectively.
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