Last Night's Market Recap
S&P 500 - Heatmap
Overnight – Investors get ready to rumble as key payrolls numbers loom large
Bullish bets on stocks were cast aside again overnight as fresh worries about the state of the economy dented sentiment after mixed employment data just a day ahead of tonight’s nonfarm payrolls report.
US private payrolls increased by less than anticipated in August, triggering worries about the health of the economy. Private payrolls increased by 99,000 jobs in August, compared to a downwardly revised total of 111,000 in July, according to payrolls processor ADP. It was the weakest month for the figure since January 2021. Economists had called for a reading of 144,000, up from the original July mark of 122,000.
The number of Americans filing for first-time unemployment benefits, meanwhile, came in at 227,000 in the week ending on August 31, a decrease of 5,000 from the prior week’s revised level of 232,000. Forecasts had seen the number in line with last week’s initial mark of 231,000.
The data, which comes ahead of Friday’s nonfarm payrolls report, has firmed up bets on bigger fed rate cuts.
Tonights payrolls is looming as one of the most important economic releases in years and a number below the expectations could trigger a sharp move. will likely shape how fund managers and investors view the market over the next 12 months
US Payrolls Expectations
- +164k jobs added
- Unemployment rate 4.2%
- Average Hourly earnings 0.3%
Bonds
Commodities & FX
The Day Ahead
ASX SPI 7961 (+0.11%)
The local market is in for a quiet day as investors prepare for the key US employment numbers to be delivered tonight.
Days like to day are for portfolio tidy-up and not a reliable indicator of market trends, sharp movements in any stock or sector should be taken lightly as everything could change with a Payrolls number significantly outside expectations.
An “in-line” number (+164k) for US employment (Payrolls) is the only number that would bring the Bulls back, as a high number would put rate cuts in doubt and a weak reading would inflame recession fears.
