S&P Futures exhibited minimal variation Thursday morning as market participants anticipated forthcoming employment statistics. S&P futures increased by approximately 0.1%, whereas Nasdaq 100 futures remained slightly above the flatline. Futures associated with the Dow Jones Industrial Average increased by 52 points, representing a rise of 0.11%. Intel shares gained 1.5% in after-hours trading, which cited sources familiar with the matter, indicating that the chipmaker has reached out to Apple to explore the possibility of an investment from the iPhone manufacturer.
The three major U.S. indexes experienced a decline for the second consecutive session on Wednesday, as prominent players in the artificial intelligence sector, including Nvidia, Oracle, and Micron Technology, showed signs of waning momentum. The market dynamics seem to indicate apprehensions regarding unprecedented valuations and possibly precarious interdependencies within the AI sector following several recent transactions. On Tuesday, the S&P 500 ended its three-day winning streak. Thursday’s release of weekly jobless claims data will serve as a critical economic indicator that may impact the Federal Reserve’s monetary policy decisions, particularly in light of growing apprehensions regarding a softening labor market and escalating layoffs. Initial unemployment claims last week declined following a temporary increase the previous week.
On Tuesday, Fed Chair Jerome Powell indicated that the deceleration in the labor market is eclipsing worries regarding persistent inflation, a factor that influenced the Federal Open Market Committee’s recent choice to reduce interest rates for the first time this year. Powell observed “a marked slowdown” in supply and demand, indicating that “in this less dynamic and somewhat softer labor market, the downside risks to employment have risen.” Salvatore Ruscitti, expressed that he does not anticipate the recent hiring slump to evolve into a “self-reinforcing negative cycle” leading to an increase in layoffs.
“On the jobless claims data, it is evident that this is a focal point for the equity markets, particularly as the Fed appears to be placing greater emphasis on the maximum employment aspect of its mandate,” Ruscitti stated. “A significant increase in weekly jobless claims would likely provoke a substantial negative response in the equity market.” Investors are exercising caution in anticipation of the personal consumption expenditures price index due on Friday, while also keeping a close watch on developments related to a potential government shutdown.