S&P Futures Climb After Volatile Day on Mixed Economic Signals

S&P Futures

S&P futures experienced an uptick on Wednesday following the S&P 500’s third consecutive session of losses, as investors assessed the latest U.S. economic data that was made available. S&P 500 futures increased by 0.4%, paralleling the rise in Nasdaq 100 futures. Futures associated with the Dow Jones Industrial Average increased by 108 points, representing a rise of 0.2%. On early Tuesday, the U.S. Bureau of Labor Statistics published its job report for November, which also encompassed data from October. The findings revealed insights into the economic health of the U.S. after a federal data backup resulting from the government shutdown this fall.

The report indicated that the U.S. economy experienced a loss of 105,000 jobs in October, with the unemployment rate increasing to 4.6% — the highest level observed since September 2021. In November, the economy saw an addition of 64,000 jobs, surpassing the consensus estimate of 45,000. The S&P 500 experienced a decline of 0.2%, while the 30-stock Dow decreased by 302 points, equivalent to 0.6%, on Tuesday as investors processed the data. Both indexes experienced their third consecutive day of declines.

The energy sector experienced declines, with U.S. crude oil settling at its lowest point since 2021, influenced by concerns over an impending surplus. Major oil companies Exxon Mobil and Chevron experienced a decline of approximately 2%. “The economy has been slowing for a while, and there had been a lot of hope in the market…but all those hopes are now basically dashed as we get this data,” Bob Elliott, remarked on Tuesday.

“This is likely not the optimal moment to be heavily invested in equities, and it may be prudent to incorporate some fixed income into your portfolio as the year concludes.” On the economic front, Federal Reserve Governor Christopher Waller and New York Fed President John Williams are scheduled to address the public on Wednesday morning. Market participants are anticipating the upcoming release of the consumer price index for November, scheduled for Thursday.