U.S. stock futures fell on Thursday as focus tentatively returned to the economy and the monthly jobs report as concerns over Middle East conflict rumbled in the background.
S&P 500 futures (ES=F) fell 0.3%, while the Dow Jones Industrial Average (YM=F) and tech-heavy Nasdaq 100 (NQ=F) fell about 0.4%. . All three gauges closed just above the flatline on Wednesday.
Some calm has returned to the market, which had been roiled by escalating tensions in the Middle East that had caused oil prices to soar. Israel has yet to launch its promised retaliation for Tuesday’s Iranian missile attack as Western countries and regional leaders seek to stabilize the situation.
Investors are now bracing for the much-awaited September jobs report to be released on Friday, following an unexpected increase in private payrolls and signs of easing in the labor market. The focus is on whether the data supports a steady cooling trend or shows signs of cracking.
Despite policymakers predicting a 0.25% rate cut in November, any new signs of deterioration could prompt the Fed to take even larger steps following last month’s 0.5% rate cut. Stock prices soared in September as the market welcomed the central bank’s aggressive shift to easing policy.
Further clues will be weighed against weekly jobless claims and service sector statistics released on Thursday.
Meanwhile, oil prices have risen for three consecutive days due to the Israel-Iran crisis, which could also put pressure on economic activity. Brent crude oil futures (BZ=F) and West Texas Intermediate (CL=F) futures both rose more than 2% on Thursday.
On the corporate front, Levi Strauss (LEVI) shares plummeted pre-market after the jeans giant announced disappointing earnings forecasts and said it was considering selling its Dockers brand. fell more than 10%. Tesla (TSLA) stock continued to fall following lackluster delivery numbers, as Reuters reported that the EV maker had suspended online orders for its cheapest model, the Model 3, in the United States.
Brent crude oil futures (BZ=F) and West Texas Intermediate (CL=F) futures both rose more than 1% on Wednesday, with traders buoyed by expectations of supply risks from escalating Israeli-Iranian attacks. is paying a premium.
Looking at individual stocks, Tesla (TSLA) shares fell more than 3% as global car deliveries increased in the third quarter but fell short of Wall Street expectations.
Meanwhile, Nike (NKE) stock fell more than 6% after the sports shoe giant withdrew its outlook for this year, citing lower first-quarter sales. “We haven’t turned the corner yet,” the company’s chief financial officer told analysts on a conference call.
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On the macroeconomic front, the latest data from ADP released on Wednesday showed that the private sector added 143,000 jobs in September, higher than economists’ expectations of 125,000 jobs and an increase from August 9. The number of visitors greatly exceeded 9,000. The announcement comes ahead of Friday’s key September jobs report, as investors weigh the Fed’s interest rate cut policy following mixed data on job openings.
Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans, and Credit Cards
