S&P 500 Index opens modestly lower after dismal US jobs report

Wall Street's main indexes trade in the negative territory on Friday.
Nonfarm Payrolls in the US rose less than expected in August.
S&P 500 Real Estate Index is the biggest decliner after the opening bell.

Eren Sengezer FXStreet

Major equity indexes in the US opened slight lower on Friday after the August jobs report painted a gloomy picture regarding the US labor markets. As of writing, the S&P 500 Index was down 0.15% on the day at 4,530, the Dow Jones Industrial Average was falling 0.2% at 35,378 and the Nasdaq Composite was losing 0.1% at 15,310.

The monthly data published by the US Bureau of Labor Statistics showed on Friday that Nonfarm Payrolls (NFP) rose by 235,000 in August, compared to analysts' estimate of 750,000. On a positive note, the Unemployment Rate edged lower to 5.2% from 5.4% in July as expected and July's NFP got revised higher to 1.05 million from 943,000. Finally, the Labor Force Participation Rate remained unchanged at 61.7%.

Among the 11 major S&P 500 sectors, the Real Estate Index is down 0.52% as the largest decliner in early trading. On the other hand, the Energy Index is posting small gains supported by a modest increase seen in crude oil prices.

S&P 500 chart (daily)

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Week ahead: Fed, BoJ and BoE decide amid inflation dilemma

A crucial central bank week looms for markets as both the Federal Reserve and Bank of Japan are under pressure from all sides, with their credibility at stake. The Bank of England looks set to have an easier ride, at least for now, while inflation releases will be watched too as war continues to rage in the Middle East.

CFTC Report: Japanese Yen reversal leads a broader positioning reset

The week in one sentence: Yen positioning swung back into net longs in the week to September 8, leading to a 103.0K-contract improvement. Canadian Dollar shorts also fell sharply, while Oil buying accompanied another price rise. Euro, Sterling and Swiss Franc positioning weakened despite firmer currencies, leaving those moves unconfirmed by speculative flows.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.