Investors are gearing up for Friday’s key monthly U.S. jobs report, which is expected to remain strong. U.S. stock futures are rising slightly after falling on Thursday after Minneapolis Fed President Neel Kashkari signaled there may not be a rate cut in 2024 if inflation persists and the economy remains strong. Brent crude oil prices are hovering above $90 per barrel due to geopolitical tensions, tight supply and the outlook for interest rates. US Treasury Secretary Janet Yellen said China’s excess manufacturing capacity could cause repercussions for the global economy. And Apple (AAPL) is laying off more than 600 employees in California after canceling its electric vehicle project. Here’s what investors need to know today.
1. Stock futures rise after Thursday’s plunge on interest rate concerns
U.S. stock futures in pre-market trading after Kashkari’s comments and the general risk-off mood sent the Dow Jones Industrial Average (DJIA) down more than 500 points in its worst session since March 2023. rose slightly. On Thursday, the S&P 500 fell 1.2%, while the tech-heavy Nasdaq and Dow both fell 1.4%.
2. Key employment figures are expected to continue to show a strong labor market
Market participants viewed employment data from the Bureau of Labor Statistics as a key data point influencing the Fed’s stance on interest rates, especially after stocks fell on Thursday on concerns that easing would not materialize this year. I’m looking forward to the statistics. This statistic is expected to indicate a strong workforce and, by extension, the resilience of the economy, providing a potential incentive for the Fed to hold off on cutting rates sooner. The figures are expected to show the economy added 200,000 jobs in March, according to the Economist survey. Dow Jones Communications and wall street journal. That’s down from 275,000 in February, but higher than the pre-pandemic average monthly employment growth of 191,000.
3. Oil prices break above $90, setting the stage for summer gas price spike
Brent crude oil futures have risen to over $90 a barrel, a level last breached in late October, supported by a variety of factors including tight supply from OPEC+ production cuts, geopolitical tensions and strong consumer demand. . Due to soaring crude oil prices, there is a risk that gasoline prices will soar this summer, which is the driving season. These are already having an impact, reflected in gasoline, with the national average price as measured by AAA rising 15% this year to $3.57 per gallon. U.S. inventories are also reportedly 3% below the recent average for this time of year and near the lowest level for this time of the past five years.
4. Yellen says China’s excess capacity poses risks to the global economy
U.S. Treasury Secretary Janet Yellen began a four-day visit on Friday, saying there were growing concerns about the global economic impact of China’s excess manufacturing capacity. He said Chinese factories produce more risks than the world can easily absorb and accused the Chinese government of “unfair” treatment of U.S. and other foreign companies. called for a return to the market-friendly reforms of the past. Speaking in the southern city of Guangzhou, Yellen said China pursues “unfair economic practices, including imposing barriers to access to foreign companies and coercive actions against U.S. companies.” Ta.
5. Apple lays off over 600 California employees after canceling EV project
Apple (AAPL) will lay off 614 employees in California, according to a new state filing. The layoffs are an unusual move for Apple over the past year, as rival companies have cut jobs just weeks after Apple canceled plans to make electric cars. The California notice does not mention specific projects where jobs will be cut, but none of the locations mentioned in the filing are at Apple’s Cupertino headquarters, but rather in a small satellite office where secret efforts are taking place. It is highly likely that there are. CNBC.
