U.S. stock futures showed modest gains late Tuesday as investors prepared for the highly anticipated January employment report, following a historic performance by the Dow that recorded its third consecutive day of record-high closes. Futures linked to the S&P 500 rose by 0.2%, while Nasdaq 100 futures saw a similar increase. Dow Jones Industrial Average futures experienced a slight uptick of approximately 0.1%.
The focus of investors is squarely set on what has been dubbed the “Super Bowl of jobs reports”: the January nonfarm payrolls data from the Bureau of Labor Statistics. Scheduled for release after delays caused by last month’s partial government shutdown, the report is expected to show a median increase of roughly 68,000 jobs, according to a Bloomberg survey of economists. The unemployment rate is anticipated to remain steady at 4.4%.
Traders are preparing for a potentially lackluster reading, and officials in the current administration appear to be tempering expectations. Peter Navarro, a trade adviser to President Trump, conveyed a more cautious outlook during an interview with Fox News, stating, “We have to revise our expectations down significantly for what a monthly job number should look like.” A disappointing jobs report could further heighten strains on markets, which were already unsettled by weak consumer data released earlier that day. December’s consumer spending was reported to be flat, significantly missing expectations of a 0.4% monthly increase.
In the regular trading session, the S&P 500 experienced a decline of 0.3%, impacted by apprehensions regarding the effects of artificial intelligence on the financial sector. Notably, shares of various financial service companies fell after the introduction of an AI-driven tax planning tool by investment platform Altruist Corp. The Nasdaq Composite dropped approximately 0.6%, conversely, the Dow managed to gain 0.1%, achieving yet another record close.
As the earnings season progresses, attention will shift to forthcoming reports from major companies such as McDonald’s, Kraft Heinz, and Cisco, all scheduled for release on Thursday. Additionally, economic indicators will remain in the spotlight, particularly with this Friday’s unveiling of the consumer price index, which is the Federal Reserve’s preferred gauge of inflation.
In other market news, a report from Bloomberg indicated that Bitcoin holders are doubling down despite the recent fall in prices, while Moderna’s stock took a hit after the FDA declined to review its application for an influenza vaccine. The market seems increasingly volatile, with mixed sentiments surrounding economic indicators and corporate earnings shaping the landscape.
