Wall Street futures have pointed sharply lower ahead of the bell on Friday, as traders react to signals of a potentially weakening US economy and await the essential jobs report from Washington. The forthcoming July employment situation report, scheduled for release at 8:30 am ET, comes with analysts projecting a net gain of approximately 180,000 jobs.
This jobs report is particularly significant, following soft private-sector data released earlier this week, where both the ADP and the Challenger reports indicated a softening job market. In pre-market futures trading, the S&P 500 fell by 1.1%, while the Nasdaq registered a decline of 1.8%, and the Dow Jones also experienced a decrease of 1.1%.
Notably, Amazon.com (AMZN) saw its shares trade down by 8% prior to the market opening, following the company's release of soft quarterly revenue figures and its issuance of moderate guidance late Thursday. Additionally, yields on the benchmark 10-year US Treasuries have declined below the 4% mark during morning trades, signaling shifting investor sentiment.
The overnight performance of Asian exchanges reflected similar concerns, trading sharply lower amid fears that both the US and China—being the globe's largest economies—would face struggles in the second half of the year. European bourses joined the global downward trend, with broad continental equity indices dropping by more than 1% as midday approached.
Investors are keeping a close watch on the economic calendar; in addition to the employment report, the factory orders bulletin for June is expected to be released at 10 am ET, while the Baker Hughes domestic oil-and-gas rig count will be available at 1 pm. In pre-market action, Bitcoin was trading at $64,475, while West Texas Intermediate crude oil saw a price increase to $76.48.
The yield for the 10-year US Treasuries offered 3.93%, and spot gold traded at $2,463 per ounce. If the data from the jobs report reflects continued market softness, it could signal further volatility in the upcoming trading sessions..