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U.S. equity index futures rise: S&P 500 up ~0.7%
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U.S. Apr non-farm payrolls 253k vs 180k est
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Euro STOXX 600 index up ~0.6%
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Dollar, bitcoin rise; gold down ~2%; crude up >2.5%
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U.S. 10-Year Treasury yield jumps to ~3.46%
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U.S. STOCK FUTURES HOLD GAINS AFTER HOT APRIL JOBS DATA (0900 EDT/1300 GMT) U.S. equity index futures are holding their gains in the wake of the release of the latest data on U.S. employment. The April non-farm payroll headline jobs number came in at 253k, which was well above the 180k estimate. The unemployment rate was 3.4% vs a 3.6% estimate. Wage data, on a month-over-month and year-over-year basis, was hotter than expected:
Of note, however, the March headline jobs number was revised sharply lower from 236k to 165k. According to the CME's FedWatch Tool , the probability that the Fed sits on its hands and leaves rates unchanged at its June meeting is now around 97% from 99% just prior to the data coming out. The chance of a 25 point rate hike is now 3% from 0% just before the numbers were released.
E-mini S&P 500 futures are higher, gaining around 0.7%. In the wake of Apple's upbeat results, the futures were up around 0.7% just before the numbers came out.
All S&P 500 sector SPDR ETFs are higher in premarket trade, with energy , up around 2%, showing the biggest gain. The SPDR S&P regional banking ETF is up around 4%. Regarding the jobs data, Anthony Saglimbene, chief market strategist at Ameriprise Financial, said: “It's definitely telling you that the job market is still hot. It’s a little bit concerning that the inflation number, the average hourly wages, that ticked up." He added, "to me it communicates two things. The Fed still has some work to do and the job market’s hot. So the 25 basis points that they raised this week was justified. It also tells me that maybe the Fed is right in terms of they can cool some of the inflation pressures in other areas of the economy, knowing that it's not going to have a real big detrimental impact on the labor force.” Additionally, Saglimbene said “The market is excited that maybe the Fed is done raising interest rates and that they're actually going to cut later this year, while at the same time the Fed is telling you that that's not really what their position is. And we have these job numbers that are showing that there's still some work to do." Here is a premarket snapshot just shortly before 0900 EDT:
(Terence Gabriel, Herbert Lash)
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)