Nasdaq Futures Close to 2% Decline Ahead of Employment Data – Europe Market Wrap

The worldwide stock selloff deepened, with Nasdaq 100 Index futures down 1.8% as traders fretted that the Fed had been too sluggish to decrease interest rates, and technology earnings underwhelmed.

The next major data point for the market will be the monthly jobs report, which is likely to reveal that US firms recruited staff at a slower rate last month. While Fed Chair Powell has indicated that rates will be cut in September, some investors believe they should act faster to avoid a deeper economic slump.

S&P 500 contracts plummeted 1.1%, while Japan’s Topix experienced its worst day since 2016. Treasuries rallied for the sixth consecutive day, with the two-year yield falling to its lowest level in 14 months. The Dollar weakened.

Forecasters predict that the monthly US jobs data will show moderate job and pay growth in July, indicating a further deterioration in the labour market. According to a poll, payrolls presumably increased by 175,000 last month, following a 206,000 gain in June.