Nonfarm payrolls ahead, Powell testimony, Costco earnings - what's moving markets
Investing.com -- Markets are focused on the release of the monthly nonfarm payrolls data on Friday, which could shed some light on the state of U.S. labor demand and influence how the Federal Reserve approaches upcoming interest rate decisions. Fed Chair Jerome Powell, meanwhile, says policymakers are «not far» from having the confidence that inflation is sustainably easing, fueling hopes for rate cuts this year. Elsewhere, Costco's (NASDAQ:COST) quarterly revenue disappoints as customers shy away from spending on pricier items.
1. U.S. jobs report ahead
The monthly labor market report is due to headline the economic calendar on Friday, with economists predicting that the U.S. economy added jobs at a slower pace in February.
Nonfarm payrolls are estimated to have risen by 198,000, down from 353,000 in January. Meanwhile, average hourly wage growth is expected to cooled to 0.2% from 0.6% versus the prior month and the unemployment rate is seen matching the previous reading of 3.7%.
Investors and policymakers at the Federal Reserve will likely be keeing close tabs on the figures. Signs of easing labor demand — and, in theory, cooling upward pressure on inflation from wage growth — could give the Fed more headroom to begin ratcheting down borrowing costs from more than two-decade highs later this year.
Earlier this week, private payrolls, job openings and unemployment claims seemed to indicate that the labor picture in the world's largest economy is solid but softening.
2. Futures muted prior to labor market data
U.S. stock market futures were subdued in the build-up to the nonfarm payrolls report on Friday.
By 03:34 ET (08:34 GMT), the S&P 500 futures contract had added 0.1%, Nasdaq 100 futures were mostly unchanged,
Read more on investing.com
