(CercleFinance.com) – Wall Street should open slightly lower on Friday morning, with investors judging that the positive aspects of the latest employment report did not validate the scenario of an upcoming rate cut.
Half an hour before the opening, futures contracts on the main New York indices fell from 0.3% to 0.5%, announcing a start to the session in the red.
However, market participants seem to be struggling to interpret the mixed employment figures which were published early this morning.
If the American economy created a number of jobs significantly higher than expected in May (272,000 against 180,000 expected), the unemployment rate rose unexpectedly to 4%, according to data from the Department of Labor.
However, these contrasting figures do not seem sufficient, on their own, to encourage the Federal Reserve to accelerate its timetable for a first rate cut since 2020.
American stock markets have been suffering for several weeks from growing questions regarding a possible revival of inflation in the country.
In this context, investors are increasingly questioning the Fed’s ability to be able to reduce its rates this year.
According to the CME Group’s FedWatch barometer, the estimated probability of an easing of 25 basis points in September is now only estimated at 51.6%, compared to 58% yesterday.
On the bond market, the yield on 10-year Treasuries rose to more than 4.41% after the employment figures, after falling yesterday to a low since March.
The dollar accentuates its gains against the euro, while crude oil prices remain on an upward trend following the employment report which confirms the good health of the American economy and the strength of demand.
On the NYMEX, American light crude oil (WTI) advanced 0.1% to $75.6. Over the week, however, it lost almost 2%.
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