Stock futures fell Thursday after better-than-expected jobs data increased investors’ anxiety around the state of the economy and path of interest rates. Futures tied to the Dow Jones Industrial Average lost 286 points, or 0.8%. S&P 500 and Nasdaq-100 futures slid 0.9% and 1%, respectively. Private sector jobs increased by 497,000 in June, according to data from payroll processing firm ADP, in the biggest monthly gain since July 2022. June’s increase was more than double the Dow Jones consensus estimate of 220,000 gained and far better than the downwardly revised 267,000-job addition seen in May. The ADP data, which is often unreliable and more volatile than other jobs data, comes ahead of Friday’s official June payrolls report. Economists are expecting 240,000 non-farm payrolls were added last month, a slowing from the 339,000 jobs added in May, according to Dow Jones. However, traders may now be expecting a hotter number that leads to the Fed resuming its hiking campaign this month after a pause. The central bank next decides on interest rates on July 26. JetBlue Airways slipped more than 1% in the premarket after the company announced it would end its partnership in the northeast U.S. with American Airlines to focus on Spirit Airlines. American shares moved nearly 1% lower, while Spirit added more than 2%. The shortened trading week resumed Wednesday for a losing session after a break for the Fourth of July holiday. The major indexes logged modest losses. Wall Street combed through minutes from June’s Federal Reserve policy meeting, which showed that most officials would support more increases ahead. Traders are pricing in a nearly 89% chance of a hike at the central bank’s meeting this month, according to CME Group’s FedWatch tool. “Fed chair Powell has made it clear that he is absolutely committed to seeing this 2% target reached, and so, I think it pretty much means that it’s a when, not an if, as far as additional hikes are concerned later this year,” CIC Wealth’s Malcolm Ethridge said on CNBC’s “Closing Bell.” Asia-Pacific markets saw sharp losses after minutes from the U.S. Federal Reserve revealed that the central bank was split on its decision to pause its rate hikes in June and sees more hikes ahead at a slower pace. Hong Kong’s Hang Seng index led losses in the region, dipping 3% in its final hour of trade. In mainland China, the Shanghai Composite was down 0.54% to close at 3,205.57 and the Shenzhen Component lost 0.55% to 10,968.37. In Japan, the Nikkei 225 fell 1.7% to 32,773.02 and the Topix shed 1.3% to 2,277.08. In South Korea, the Kospi dropped 0.88% to close at 2,556.28 while the Kosdaq fell 2.32% to 870.52. In Australia, the S&P/ASX 200 slid 1.27% to end its session at 7,161.1. Oil prices were down slightly on Thursday as the market digested tighter crude supply alongside fears of global economic slowdown. Brent crude futures last slipped 23 cents to $76.42 a barrel after a 0.5% gain the previous day. U.S. West Texas Intermediate crude dipped 16 cents to $71.63 after rising by 2.9% in post-holiday trade on Wednesday to catch up with Brent’s gains earlier in the week. Gold prices gained on Thursday, helped by a weaker dollar, while investors braced for U.S. jobs data that could influence the Federal Reserve’s policy trajectory. Spot gold last rose by 0.41% to $1,925.2703 per ounce, while U.S. gold futures gained 0.25% to $1,932.00. The dollar fell 0.4% against its rivals, making bullion cheaper for overseas buyers. Capping gold’s upside, benchmark yields hit a four-month high.
Roodeweg 222, Willemstad, Curaçao