Stock Futures Open Slightly Higher After Dow Jones Slip After August Jobs Report

Stock Futures Open Slightly Higher After Dow Jones Slip After August Jobs Report

U.S. equity futures opened slightly higher Monday night after the Dow fell a record low Friday ahead of the three-day Labor Day weekend.

Dow Jones Industrial Average futures rose 82 points, or 0.23%. The S&P 500 and Nasdaq 100 futures contracts rose 0.21% and 0.31% respectively.

The Dow Jones lost 74.73 points, or 0.21%, in regular trading on Friday, while the S&P 500 was down 0.03%. The tech-rich Nasdaq rose 0.21%, providing support for the broader market.

The losses came after the August jobs report fell below expectations, highlighting lingering concerns about the spread of Covid and its delta version. The Labor Department reported that non-farm wages rose 235,000 in August, but economists polled by Dow Jones expected 720,000 jobs.

Ryan Detrick, chief market strategist at LPL Financial, said there could be a strong return to employment “in the coming months” and that there are promising signs that the worst increase in cases of COVID could be behind us. However, the August jobs report has the potential to delay the Fed’s cutback schedule, which is set to begin largely this year, Detrick said.

“Fed Chairman Powell has made it clear that the job market will serve as an eye-opener for him as to when to start cutting back on asset purchases,” he said. “Together [Friday’s] With a missing wage bill, it is clear that the labor market is under short-term pressures, and while those pressures are likely to end, the Fed will likely err on the side of caution to avoid acting prematurely. “

A week after the start of September, key averages are up, despite a muted start to the month. Year-to-date, the Dow Jones is up 15.5%, the S&P is up 20.7% and the Nasdaq Composite is up 19.2%, although investors and analysts are still looking for a major correction in September.

“Of course, passive investors have yet to feel the pain,” Bank of America said in a note Friday, adding that “2021 represents another year in which [S&P 500] He’s been squashed, but there are signs that it may be time to be more “picky” about stocks.

There is no economic data on Tuesday. Later in the week, Mary Daly, president of the Federal Reserve Bank of San Francisco, speaks at a conference hosted by the Brookings Institute.

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