The Market News Today: US NFP Report to Impact Fed Rate Cut Odds

US Nonfarm Payrolls Expected to Expand by 212K in March; Unemployment Rate Steady at 3.9%

The upcoming release of the US Nonfarm Payrolls (NFP) report by the Bureau of Labor Statistics (BLS) on Friday at 12:30 GMT is anticipated to reveal a job creation of 212,000 in March, a decrease from February’s 275,000. The Unemployment Rate is expected to remain unchanged at 3.9%. Additionally, Average Hourly Earnings are forecasted to rise by 0.3%, cooling off slightly from February’s 4.3% growth. Market attention remains focused on the Federal Reserve’s interest rate stance, with a 60% probability of a rate cut as early as June, according to the CME Group’s FedWatch Tool.

Dow Futures Inch Upward Following Steep Decline; Investors Await Crucial Jobs Data

Futures linked to the Dow Jones Industrial Average edged slightly higher Friday morning after the index experienced its most significant drop in over a year. Investor focus also remains on awaited labor statistics scheduled for release later in the morning. The Dow futures climbed 59 points, or 0.15%, with S&P 500 futures and Nasdaq 100 futures also showing gains. Market attention shifts to the anticipated nonfarm payrolls growth and unemployment rate figures, crucial indicators for the trajectory of interest rates.

U.S. Treasury Yields Tick Up Ahead of Key Jobs Data Release

U.S. Treasury yields experienced a slight increase Friday morning ahead of the anticipated release of nonfarm payrolls data for March. The 10-year Treasury yield edged up less than one basis point to 4.318%, following a recent high of 4.429%. Market focus shifts to the 12:30 GMT release of jobs data, with economists projecting a 212,000 job increase. The figures will influence market expectations regarding Federal Reserve interest rate cuts amidst concerns over persistent inflation, highlighted by recent comments from Minneapolis Fed President Neel Kashkari.

Gold’s Rally Pauses as Investors Await U.S. Jobs Data

After a five-session surge, gold’s momentum paused as attention turned to the upcoming U.S. non-farm payrolls data. Spot gold dipped 0.5% to $2,278.50 per ounce, retreating from its record high of $2,305.04. Analysts anticipate further gains amid a backdrop of a weakening U.S. dollar, expectations of Fed rate cuts, and geopolitical tensions. However, concerns over overbought conditions and potential corrections linger as market awaits insights on Fed’s monetary policy direction.

Oil Prices Rise Amid Geopolitical Tensions and Supply Concerns

Oil prices continued their upward trend on Friday, poised for a second consecutive weekly gain. Brent crude climbed to $91.14 a barrel, while U.S. West Texas Intermediate crude reached $86.96 a barrel. Geopolitical tensions in Europe and the Middle East, along with supply constraints and optimism about global fuel demand growth, have supported the rally. Analysts predict further price increases in the short term, with Brent expected to reach $95 a barrel.