US stock futures turned lower on Thursday as investors digested more weaker-than-expected labor market data that could help set expectations for both interest-rate cut hopes and the health of the US economy.
Futures on the S&P 500 (ES=F) were about 0.3% lower, while those Dow Jones Industrial Average (YM=F) nudged about 0.1% lower. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the declines, sliding 0.6%. The major gauges finished Wednesday’s volatile session mixed as their sluggish start to September continued.
Private employers in the US posted their smallest monthly hiring growth since January 2021, new data from ADP showed Thursday. Private payrolls grew by about 99,000, well below expectations. Meanwhile, slightly fewer Americans filed a new claim for unemployment benefits last week. On Wednesday, government data showed job openings slumped.
Together, the jobs market data serves as an appetizer for Friday’s jobs report for August, crucial to the Fed’s policy decision making and closely watched amid hopes for a “Goldilocks” economy.
Stocks’ lack of momentum comes with the market torn between conflicting impulses as data releases paint a downbeat picture of the economy. Recent soft readings make the case for deeper rate cuts. But they could also be a sign the US is on the brink of recession and a “soft landing” is no longer in the cards.
Traders now see an almost 50-50 chance the Federal Reserve will lower rates by 0.5% at its September meeting.
On the corporate front, earnings from HPE (HPE) and C3.ai (AI) shed some light on prospects for AI growth. C3.ai shares slumped 20% after the enterprise AI software maker posted weak subscription revenue. HPE stock slipped as lower amid disappointment over its profitability.
Yesterday, I came across an AMAZING local Facebook group: Cedar City Worst Drivers. In this group, people have posted photos of actual LOCAL people in Southern
Minnesota added 14,400 jobs in August, the largest monthly gain since July 2022, the Minnesota Department of Employment and Economic Development said Thursday.
Warner Music Group said Thursday it would lay off about 750 employees, or 13% of its workforce, as part of a revised strategic restructuring plan t
Listen to this article Minnesota saw its largest monthly employment increase in more than two years last month as state employers added 14,400 jobs, the Minn