U.S. equity markets are anticipated to open significantly lower in today's trading session, reacting to employment data that has fallen short of expectations. The Dow Jones Industrial Average futures have declined by 1.2%, the S&P 500 futures are down 1.5%, and the Nasdaq futures have plummeted by 2.2%.
This downturn follows the release of troubling employment statistics that have pointed to a weakened labor market. According to recent data, the unemployment rate for July increased to 4.3%, higher than the 4.1% reported in June and exceeding analyst projections, which had also estimated a rate of 4.1%.
Specifically, the nonfarm payroll numbers showed a drop to 114,000 jobs added in July, notably below the expectations of a decline to 176,000 from the previous month’s 206,000. Furthermore, average hourly earnings—a critical metric indicating changes in labor cost—came in lower than expected at a 0.2% increase, compared to 0.3% in June, placing additional pressure on market sentiment. Oil prices are also taking a hit, with North Sea Brent crude facing a nearly 2% decline to $77.96 per barrel, and U.S.
West Texas Intermediate crude dropping by 2.3% to $74.53 per barrel. In the context of global markets, Japan's Nikkei index plummeted by 5.8%, while Hong Kong's Hang Seng index tumbled by 2.1%, and China's Shanghai Composite saw a decrease of 0.9%. In Europe, early trading has shown mixed results, with the UK’s FTSE 100 slipping by 0.7%, Germany's DAX 30 declining by 1.8%, and France’s CAC 40 falling by 0.9%. Turning to specific equities, VSee Health ($VSEE) has seen remarkable premarket activity, with its shares soaring by 170% following Thursday’s announcement about its agreement with Ava Robotics, aimed at developing telepresence solutions specifically tailored for the inpatient intensive care market.
In addition, shares of MKDWELL Tech (MKDW) surged by 83%, continuing an upward trend after completing its business combination with Cetus Capital Acquisition. Telesis Bio ($TBIO) shares jumped 33%, adding to a previous gain of 7.6%, and Akanda ($AKAN) shares advanced by 24% after encountering a mere 3% loss on Thursday.
Notably, Heidrick & Struggles International ($HSII) experienced a significant climb of 28% following a 2.6% loss in the preceding session. On the flip side, Fresh Vine Wine ($VINE) saw its shares dive by 33% after announcing the termination of its merger agreement with Notes Live. TELUS International ($TIXT) shares plummeted 27%, compounding a 4% loss from the prior trading day.
Procore Technologies ($PCOR) shares dropped 21% after releasing second-quarter revenue results and third-quarter revenue guidance that fell short of analyst expectations. Additionally, Intel's ($INTC) shares fell dramatically by 25% due to the company's disappointing Q2 earnings, suspension of dividends starting Q4, and the initiation of a cost-cutting program.
Lastly, shares of Smith Micro Software ($SMSI) decreased by 31% following a higher-than-expected loss and lower-than-expected revenue figures reported for Q2..