Stock futures were little changed on Thursday as global bond yields rose and traders eyed two more jobs reports that may impact the chances of the Fed cutting interest rates next year.
Investors will wish to see confirmation from Thursday’s weekly unemployment claims data, and Friday’s nonfarm payrolls report, that the slower jobs market will help ease inflationary pressures.
“Get out the popcorn, it could be an entertaining 48 hours as traders jockey for position into and eventually out of the granddaddy of all economic releases, U.S. nonfarm payrolls,” SPI Asset Management said.
However, SPI warned that investors should be careful wishing for weak jobs reports.
“Without stating the obvious, the labor market is showing signs of contracting much faster than expected. This is not necessarily a ‘risk-on’ panacea, especially if the downward momentum in the jobs markets picks up a good head of steam.”