United States equity futures edged higher on Sunday evening (Monday AEDT) as investors looked ahead to key labour market and inflation reports, following a volatile week that culminated in the Dow Jones Industrial Average closing above the 50,000 mark for the first time.
By 10:45 am AEDT (11:45 pm GMT), Dow futures were up 0.2%, S&P 500 futures rose 0.3%, and Nasdaq 100 futures gained 0.4%.
The modest advance follows a sharp rebound for major benchmarks on Friday, when major indices recovered from steep losses earlier in the week.
The earlier sell-off had been driven primarily by weakness in the technology sector, particularly software stocks, while Bitcoin also tumbled as investors adopted a more cautious, risk-off stance.
In Friday’s session, the 30-stock Dow surged 2.5% to record its first close above 50,000 after breaching the level in intraday trade. The S&P 500 climbed 2%, and the Nasdaq Composite added 2.2%.
Bitcoin also recovered, breaking back above US$70,000 after falling below $61,000 late on Thursday.
Market attention now turns to Wednesday’s delayed January nonfarm payrolls report from the Bureau of Labor Statistics.
The release had originally been scheduled for last Friday but was postponed due to the partial government shutdown. The data follow last week’s ADP report, which showed private payrolls rising by just 22,000 in January, well below expectations.
Markets are expecting the official jobs report to show an increase of 70,000 positions in January. However, ANZ analysts noted that broader indicators have pointed to softness in the labour market.
“The consensus expects nonfarm payroll jobs rose 70k vs 50k in December. This expectation contrasts with the weakness reported in January ADP private hiring (22k), the fall in job openings at the end of December and high January layoffs (108.4k) reported in the January Challenger survey,” ANZ said.
“If the data undershoot consensus, we think that will elicit a stronger market reaction than an as-expected or stronger number would. That is because it would challenge the Fed’s assessment that the labour market is stabilising.”
Investors will also focus on the delayed January consumer price index report, due on Friday (Saturday AEDT). The inflation reading could prove pivotal for expectations around the Federal Reserve’s rate path, particularly after recent volatility in equities and cryptocurrencies.
Earnings season continues alongside the macroeconomic releases. Coca-Cola and Ford Motor are scheduled to report on Tuesday, and their results may test whether the recent rotation out of technology shares broadens into other sectors or begins to reverse.
