As the opening bell approaches, the benchmark US stock indices have indicated a sharp decline, with traders reflecting on potential weaknesses in the US economy while eagerly anticipating a crucial jobs report from Washington. The Nasdaq Composite observed a significant drop of 1.8%, the S&P 500 suffered a decline of 1.2%, and the Dow Jones Industrial Average retreated by 0.9%.
Meanwhile, Asian exchanges faced substantial losses overnight, raising alarms regarding the economic outlook for both the US and China in the latter half of the year. European markets did not escape the global trend, joining the sell-off with heightened concerns prevalent across the continent. The imminent jobs report, scheduled for release at 8:30 AM ET, has generated considerable speculation, with forecasts suggesting a net increase of approximately 180,000 jobs for the previous month.
This report comes on the heels of recent data from Automatic Data Processing (ADP) and the Challenger, Gray & Christmas report, both of which have indicated a noticeable softening in the job market. In addition to employment metrics, investors are closely monitoring the economic calendar, which includes the factory orders report for June, also expected at 10 AM ET, as well as the Baker Hughes domestic oil-and-gas rig count set for 1 PM. In premarket trading, shares of Amazon.com ($AMZN) plummeted by 8% following the announcement of disappointing quarterly revenue figures released late Thursday.
Conversely, Exxon Mobil ($XOM) saw its shares rise in premarket as the company reported a year-over-year increase in earnings and revenue for the second quarter. In contrast, Chevron ($CVX) also reported higher revenue for the same quarter; however, its adjusted earnings experienced a downturn compared to last year, leading to a slight decline in its share price. Market yields on the benchmark 10-year US Treasuries fell below the 4% mark during morning trading sessions, indicating a shift in investor sentiment. In the realm of cryptocurrencies, Bitcoin saw a minor increase of 0.2%, reaching $64,686.77.
Meanwhile, West Texas Intermediate crude oil traded upwards at $76.43 per barrel, while gold prices rose by 0.6%, closing at $2,461.39 per ounce. The day has been marked by significant fluctuations across various sectors, indicating a tumultuous trading environment ahead..