Stock futures paused on Friday ahead of a pivotal jobs report that will shed light on whether the Federal Reserve’s aggressive rate-hike campaign is slowing down the economy.
What’s driving markets
The Labor Department is expected to report that the U.S. added 190,000 jobs in November–buoyed by the return of striking auto workers–with an unchanged unemployment rate of 3.9% and average hourly earnings growth of 0.3%, according to the Wall Street Journal poll of economists.
“For the most part, underlying job growth has remained very resilient this year, slowing close to a still-solid pre-pandemic average around 150,000 to 250,000 per month,” Citi said.
The S&P 500 is close to a 20-month high. “The reason for the newfound optimism is the widespread expectation that the Fed has finished its job, ” the AdvisorShares Focused Equity ETF said.
Next week may be equally important, with key inflation data, Treasury auctions and a Fed interest-rate decision.