U.S. stock futures saw modest gains with the S&P 500 futures inching up by 0.1% and Nasdaq 100 futures advancing by 0.3%.
Meanwhile, the Dow Jones Industrial Average showed little movement, and the U.S. Dollar Index remained stable. The yield on the 10-Year Treasury stood at 3.903% as of 18:05 EST (22:05 GMT).
Labor Market Takes Center Stage
As a new week begins, investors are shifting their focus to crucial labor market data, which is expected to significantly influence U.S. markets. The previous month’s employment report fell short of expectations, leading to a broad sell-off in risk assets, compounded by the earlier disappointing ISM Manufacturing PMI.
The weaker labor figures have sparked discussions on possible causes, with some pointing to Hurricane Beryl as a key factor. Although the Bureau of Labor Statistics (BLS) indicated that the hurricane, which struck Texas during the survey period for July’s employment report, had “no discernible effect” on the employment numbers, the household survey suggested otherwise.
The data revealed that 436,000 people were unable to work due to severe weather, the highest number recorded in July. Additionally, 249,000 individuals were reported to be on temporary layoff during the same timeframe.
These temporary layoffs are believed to have contributed to the uptick in unemployment. Market analysts are eager to see if the July employment data was significantly affected by these short-term disruptions.
The Federal Reserve, which closely monitors the labor market, will consider this upcoming report when deciding the size of the next interest rate cut, with potential reductions of either 25 or 50 basis points on the table.
