S&P 500 opens flat as investors take a step back ahead of NFP

Wall Street's main indexes post modest gains on Thursday.
Financial shares rise as US T-bond yields stage a rebound.
Energy stocks decline as crude oil prices go into consolidation.

Eren Sengezer FXStreet

Major equity indexes in the US opened near Wednesday's closing levels as investors seem to be reluctant to take large positions while waiting for Friday's labour market report. As of writing, the S&P 500 Index was unchanged on the day at 4,167, the Dow Jones Industrial Average was rising 0.1% at 34.265 and the Nasdaq Composite was down 0.1% at 13,485.

Supported by a modest rebound witnessed in the US Treasury bond yields on Thursday, the rate-sensitive Financials Index is up 0.5% after the opening bell.

On the other hand, the Energy Index is losing 0.7% as the worst-performing major sector in the early trade as crude oil prices struggle to gain traction after closing in the red on Wednesday.

Earlier in the day, the US Department of Labor reported that the weekly Initial Jobless Claims declined to 498,000 in the week ending May 1. This reading came in better than the market expectation of 540,000 but failed to trigger a significant market reaction ahead of Friday's Nonfarm Payrolls (NFP) data.,

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 sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold looks slightly bid above $4,000

Gold manage to regain some balance, leaving behind two daily drops in a row and reclaiming the key $4,000 mark per troy ounce and above on Monday. The better tone in the US Dollar and mixed US Treasury yields accompany the precious metal’s uptick, while declining crude oil prices appear to sustain the bounce for now.

Bitcoin stalls around $80,000 as geopolitical tensions dampen risk appetite

Bitcoin hovers around $80,500 on Monday after three straight weeks of correction. Rising geopolitical tensions in the Middle East continue to push oil prices higher, stoking inflation concerns and dampening risk appetite.

Everyone's bracing for a hawkish central bank week. Here's why the surprise could be dovish

Five of the world's major central banks are preparing to announce monetary policy decisions this week, with investors increasingly anticipating higher interest rates as the global energy shock continues to push inflation above target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.