(Bloomberg) — U.S. stock futures were weak on Wall Street as traders waited for jobs data to provide a glimmer of economic hope. Nvidia Corp. fell 1.6% in premarket trading.
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The S&P 500 contracts fell 0.4%, a sign that the downtrend may be easing after yesterday’s 2.1% selloff. Losses in Europe and Asia were even bigger, and traders are still reeling from the pace and severity of the U.S. decline. The VIX index rose above 22, and the dollar index weakened for the first time in six days.
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The U.S. jobs report due out on Wednesday is expected to show further cooling in the labor market, following data yesterday showing manufacturing activity contracted for a fifth straight month. Negative macroeconomic data is increasingly turning into pain for stocks and other risky assets as the market’s focus shifts from inflation to concerns about economic growth.
Traders now expect the Fed to start easing policy in September and cut rates by more than 2 percentage points over the next 12 months, the largest drop since the 1980s recession. Payrolls data due Friday are seen as crucial in shaping the size of the initial rate cut.
“Disappointing numbers will make markets a little bit nervous,” said Neil Burrell, chief investment officer at Premier Miton Investors. “There’s just a lack of uncertainty around it. You don’t have the guts to say buy the dip on Wednesday when the numbers come out on Friday.”
Treasuries rose for a second day as traders added to their bets on a massive Fed cut, with the yield on the two-year note falling to 3.84%. The odds of a half-point cut later this month have risen to about 30% from 20% last week, according to swaps.
Crude oil has fallen further after plunging to its lowest level this year. Brent futures fell to around $73 a barrel as concerns grew that weak demand and renewed supply from OPEC+ would create a new glut. West Texas Intermediate fell below $70 for the first time since early January.
Key events this week:
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Eurozone HCOB Services PMI, PPI, Wednesday
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Canada’s Interest Rate Decision, Wednesday
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US Jobs, Factory Orders, Beige Book, Wednesday
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Eurozone retail sales, Thursday
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U.S. Initial Jobless Claims, ADP Employment, ISM Services Index, Thursday
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Eurozone GDP, Friday
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U.S. Nonfarm Payrolls, Friday
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Federal Reserve Chairman John Williams speaks Friday
Some of the key market moves:
stock
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S&P 500 futures were down 0.3% as of 6:33 a.m. New York time.
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Nasdaq 100 futures fell 0.5%.
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Dow Jones Industrial Average futures fell 0.2%
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The Stoxx Europe 600 fell 1%.
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The MSCI World Index fell 0.4%.
call
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The Bloomberg Dollar Spot Index was little changed.
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The euro was little changed at $1.1054.
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The British pound was little changed at $1.3118.
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The Japanese yen rose 0.2 percent to 145.12 per dollar.
Cryptocurrency
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Bitcoin fell 2.7% to $56,631.62.
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Ether fell 2.7% to $2,397.40.
Bonds
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The 10-year Treasury yield fell 2 basis points to 3.82%.
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German 10-year yields fell 4 basis points to 2.23%.
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UK 10-year yields fell 3 basis points to 3.96%.
goods
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West Texas Intermediate crude rose 0.3% to $70.46 a barrel.
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Spot gold fell 0.3% to $2,486.19 an ounce.
This article was created with the assistance of Bloomberg Automation.
–With assistance from Aline Oyamada.
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