Following the lackluster performance seen in the previous session, stocks are likely to move to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.5 percent.
The futures advanced following the release of a closely watched Labor Department report showing employment in the U.S. increased by much more than expected in the month of January.
The Labor Department said non-farm payroll employment jumped by 130,000 jobs in January after rising by a downwardly revised 48,000 jobs in December.
Economists had expected employment to climb by 70,000 jobs compared to the addition of 50,000 jobs originally reported for the previous month.
The report also said the unemployment rate edged down to 4.3 percent in January from 4.4 percent in December, while economists had expected the unemployment rate to remain unchanged.
The data is likely to generate optimism about the strength of the U.S. economy but may also reduce the chances of near-term interest rate cuts by the Federal Reserve.
On Friday, the Labor Department is scheduled to release a separate report on consumer price inflation that may shed additional light on the outlook for rates.
After moving notably higher over two previous sessions, stocks showed a lack of direction during trading on Tuesday. While the Dow reached a new record intraday high in early trading, the Nasdaq and the S&P 500 spent the day bouncing back and forth across the unchanged line.
The major averages eventually ended the day mixed. The Dow inched up 52.27 points or 0.1 percent to 50,188.13, but the S&P 500 fell 23.01 points or 0.3 percent to 6,941.81 and the Nasdaq slid 136.20 points or 0.6 percent to 23,102.47.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Wednesday, with the Japanese markets closed for a holiday. China’s Shanghai Composite Index inched up by 0.1 percent, while Hong Kong’s Hang Seng Index rose by 0.3 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is up by 0.8 percent, the French CAC 40 Index is nearly unchanged and the German DAX Index is down by 0.3 percent.
In commodities trading, crude oil futures are surging $1.52 to $65.48 a barrel after falling $0.40 to $63.96 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $5,073.60, up $42.60 compared to the previous session’s close of $5,031. On Tuesday, gold slid $48.40.
On the currency front, the U.S. dollar is trading at 153.59 yen compared to the 154.38 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1865 compared to yesterday’s $1.1894.
Business News
U.S. Stocks May See Initial Strength Following Strong Jobs Data
2026-02-11 13:50:36
