S&P 500, Nasdaq set for lower open after jobs data; Apple slips
By Johann M Cherian and Shristi Achar A
(Reuters) -The benchmark S&P 500 and the Nasdaq were on track for a lower open on Thursday after a jobs report indicated resilience in the labor market, tempering expectations on how early interest-rate cuts could begin.
Wall Street stumbled in the first two sessions of 2024, with the benchmark S&P 500 notching its worst two-day performance since late October as investors booked profits after a blistering rally last year.
Bets that the Federal Reserve could start reducing interest rates this year had driven much of the gains towards the end of 2023, though the latest minutes from the central bank's December policy meeting did not offer many clues on when the easing might commence.
Traders see a 66.4% chance for at least a 25-basis point (bps) rate cut in March and a near 95% probability for May, according to the CME Group's (NASDAQ:CME) FedWatch tool.
An ADP National Employment report showed U.S. private employers hired more workers than expected in December, pointing to persistent strength in the labor market that should continue to sustain the economy.
Private payrolls increased by 164,000 in December, compared with a 101,000 rise the month before. The report comes ahead of the official employment data due on Friday.
«It puts a question mark as to whether or not tomorrow's official employment data will be more than what markets expect,» said Peter Cardillo, chief market economist at Spartan Capital Securities.
«This plays into the hands of whoever is expecting a soft landing. But let's not forget that we've had a big rally so what we're seeing, what we saw in the past couple of days, was a technical adjustment.»
Separately, a Labor Department report showed Americans filing
Read more on investing.com
