Stocks Fall Ahead of Jobs as Slowdown Fears Mount – Europe Market Wrap
US stock futures declined as investors anticipated employment statistics that will be crucial in assessing the state of the US economy and the extent of an interest rate drop by the Federal Reserve later this month.
The S&P 500 was on track for a fourth straight day of losses, while Nasdaq 100 contracts were down more than 1%. Premarket trade saw Nvidia fall 2.2% as chipmakers fell after Broadcom issued poor guidance.
Treasuries with a 10-year yield of 3.7% saw a three basis point decrease.
A crucial indicator of wage growth in the eurozone decreased in Europe, giving officials of the European Central Bank more confidence to cut interest rates the following week. According to a poll, borrowing prices will drop every quarter until they hit 2.5% if inflation stays low.
Following a week of mixed data that shook markets, Friday’s report will assist policymakers in determining whether the US economy is headed for a soft landing or a recession. When Fed officials meet in two weeks, swap traders are fully pricing in 25 basis points of cuts, with a roughly 35 percent likelihood of a 50 basis-point drop.
