- In anticipation of a vital monthly job report that could provide information on how much further the federal reserve might boost interest rates, US equities futures declined on Friday, reflecting the generally cautious attitude on global markets.
- S&P 500 and Nasdaq 100 contract prices decreased, but the underlying indices are still expected to post increases for a second consecutive week. Pre-market US trade revealed worries about how higher rates might affect company profits, particularly in the tech industry, where shares of chipmaker Marvell Technology and cloud security company Zscaler fell following reports of unfavourable outlooks. The Stoxx 600 index for Europe was stable and on track for a seven-week winning streak.
- Stocks got a boost this week from a softening in China’s tough COVID zero stance and signals from Fed chair Powell of a downshift in the pace of rate hikes. bets on where US central bank’s rate will peak have now dropped below 4.9%, according to swap markets. the current benchmark sits in a range between 3.75% and 4%.
- Many economists believe the jobs report released on Friday may not be the tipping point that Fed officials are looking for in their fight against inflation. According to the median forecast in a study by a source, payroll growth would be 200,000 in November, only marginally slowing from the prior month. Other market observers point to indications that sharp rate increases will cause a slowdown in other economies.
