Dow Futures Decline By 70 Points: Consolidation Ahead Of Jobless Claims Data
On Thursday, the US stocks opened a little lower, mainly due to the consolidation after the recent comments made by Powell. And then we have the jobless claims data ahead which will tell us about the labor market conditions in the USA.
In terms of percentage, Dow Futures declined by only 0.2%, while the S&P 500 Futures were down by 0.1%. Similarly, the Nasdaq 100 Futures also dropped by 0.2% or around 20 points.
Dow Jones, which tracks blue-chip stocks, actually gained 2.2% or around 700 points on Wednesday, though! And if we look at the S&P 500, it actually gained 3.1% while the Nasdaq Composite gained 4.4%. So overall, the markets were mixed as the futures indices dropped while others actually gained!
At the center of this whole ordeal is Powell, who said that the Fed could decrease the value of interest rate hikes.
High-Interest Rates & US Jobs Market
If we look back, the central bank has been raising interest rates in the form of 75 basis points in the last few months. The reason for this policy was to somehow control inflation which was at several years' high! However, the stock market was caught in the middle as high-interest rates and a stronger dollar caused the stocks to drop lower.
Overall, the Dow Jones jumped by 5.7% during November, while the Nasdaq jumped 4.4% for the month. As for the S&P 500, it also gained 5.4% during November, making it a positive month for US stocks.
Looking ahead, we have the jobless claims, after which we will have the monthly jobs report from the USA. Considering the high-interest rates in the USA, there's a chance that it might have impacted the job market.
In addition, we will also get to see the data on spending as well as personal income. Some other important data releases are the ISM manufacturing and construction spending.
Back in the day, the jobs reports from the USA was considered a major event but that's been replaced by the inflation and the interest rate hikes.