U.S. Stock Futures Rise Amid Nonfarm Payrolls Data Expectation
Stock Futures Rebound After Previous Selloff
U.S. stock index futures rose on Friday, bouncing back from the previous session’s selloff. The focus is now on the upcoming nonfarm payrolls data for more cues on potential interest rate cuts this year.
Market Indices Show Positive Momentum
At 06:30 ET (10:30 GMT), the Dow Jones Industrial Average rose 60 points, or 0.2%, the S&P 500 rose 14 points, or 0.3%, and the Nasdaq rose 65 points, or 0.4%. The main Wall Street indexes suffered steep losses on Thursday due to rising geopolitical tensions and hawkish comments from Federal Reserve officials.
Nonfarm Payrolls Data in Focus
Markets are eagerly awaiting the release of nonfarm payrolls data for March to gain further insights into the labor market’s health. This data will play a crucial role in determining the potential for interest rate cuts by the Federal Reserve.
Fed Officials Express Hawkish Sentiments
A series of comments from Fed officials this week suggested that sticky inflation might delay rate cuts. Minneapolis Fed President Neel Kashkari even hinted that there might be no rate cuts in 2024 due to inflation concerns.
Crude Oil Prices Surge Amid Middle East Tensions
Oil prices reached a five-month high as geopolitical tensions in the Middle East escalated. The ongoing conflict between Iran and Israel has raised concerns about supply disruptions, pushing prices higher.
Expectations of tight markets were further fueled by OPEC’s decision to maintain production cuts and ongoing disruptions in Russian refineries due to Ukrainian drone attacks. Despite record-high U.S. production, the demand for gasoline in the U.S. remains strong, indicating potential market tightening.
