Stock futures fell in premarket trading on Friday after data suggested the U.S. labor market remained strong. This is a blow to investors who are betting that the Fed will cut interest rates sooner than expected to support a rapidly weakening economy.
The US added 199,000 jobs in November, more than economists expected, while the unemployment rate fell to 3.7% from 3.9%. November’s figure was boosted by tens of thousands of autoworkers and actors returning to work after strikes, but the positive surprise shows the job market is still strong.
Treasury yields jumped immediately after the report, while the dollar strengthened.
Friday’s report complicates data from earlier in the week that painted a picture of a dramatically weakening market. According to the Bureau of Labor Statistics, the number of job openings fell in October to the lowest level since March 2021. The report on Wednesday and Tuesday also showed that the number of job openings for every unemployed person fell from a post-pandemic high has fallen from two to 1.3. And on Wednesday, payroll services provider ADP said the private sector added 103,000, far less than the 120,000 economists expected.
Stocks got a boost yesterday from big tech and chip stocks: The Nasdaq rose more than 1%, the S&P 500 gained 0.8% and the Dow gained 0.2%.
Stock futures fall on jobs report
17 minutes ago
Futures contracts tied to the Dow Jones Industrial Average were 0.3% lower in premarket trading Friday.
S&P 500 futures also lost 0.4%.
Nasdaq 100 futures fell 0.7%.