U.S. stock futures opened modestly higher by 0.1%, while the greenback rose by 0.3%.
The yield on U.S. Treasury bonds remained relatively unchanged, as did the . Meanwhile, the yield on the 10-year U.S. Treasury note was at 3.903% at 18:05 ET (22:05 GMT).
Focus shifts to the labor market
Investors are heading into a crucial week for US markets, with a keen eye on upcoming labor market data. The previous month’s employment report came in below expectations, prompting a sell-off in risk assets that was triggered by the previous day’s disappointing ISM manufacturing PMI reading.
The weak employment numbers have sparked debate about their cause, and Hurricane Beryl was a significant factor. Although the Bureau of Labor Statistics said the hurricane, which hit Texas during the July employment survey week, had “no discernible impact” on employment data, the household survey revealed a different effect.
It noted that 436,000 people were unable to work due to bad weather conditions, a record for July. It was also reported that 249,000 people were temporarily laid off during the same period.
The rise in unemployment has been largely attributed to these temporary layoffs, and market participants are keen to determine whether the July data was indeed affected by such temporary factors.
The Federal Reserve, which closely monitors the labor market, will use the upcoming report to decide how much to cut interest rates at its next meeting, with options for either a 25-basis-point or 50-basis-point cut.
Comments are closed, but trackbacks and pingbacks are open.