- US stock futures fell Friday ahead of the monthly US jobs report, watched for signs of cooling in the labor market.
- The jobs data is "likely to be a double-edged sword for investors" as it could lead to harder rate hikes, an analyst said.
- Oil prices swung in volatile trading, but were headed for a weekly loss as demand worries outweighed tighter supplies.
US stock futures fell in cautious trade Friday as investors waited for the monthly US jobs report, as oil pulled back from recent gains to head for a weekly loss.
Futures on the Dow were down 0.19% as of 6:05 a.m. ET, pulling back alongside the other major US stock indexes from a rally Thursday as recession concerns ebbed. S&P 500 futures fell 0.31%, while the tech-heavy Nasdaq lost 0.48%.
The nonfarm-payrolls report for June released later in the day will give investors a clearer idea of whether the overheated US labor market is cooling off.
Analysts said a strong month of hiring would be hard for the Federal Reserve to ignore, and could give it the impetus to double down on its plan to fight inflation if wage pressures are starting to fade.
"This is likely to be a double-edged sword for investors," Hargreaves Lansdown equity analyst Sophie Lund-Yates said. "While the data is expected to show another round of strong hiring, which is inherently positive, it also paves the way for policymakers to hike interest rates even more aggressively."
At the same time, a flagging labor market could worry investors, who have been gripped by fears the Fed's monetary tightening could tip the US economy into a severe economic downturn.
"Payrolls awaits us today and given that we think it will be tough to call a proper recession until employment cracks, these are important events," Deutsche Bank strategist Jim Reid said in a note.
Elsewhere, Europe's pan-continental Stoxx 600 index struggled for direction, last 0.05% lower, ahead of a speech by European Central Bank President Christine Lagarde. Paris' CAC 40 was down 0.25%, while Frankfurt's DAX 40 was up 0.10%.
Meanwhile, London's FTSE 100 dropped 0.19% amid speculation about the UK's next leader after Boris Johnson's resignation.
In Asia, the Shanghai Composite slid 0.25%, but Hong Kong's Hang Seng closed up 0.38% after reports that China is looking to boost spending stimulus by allowing local governments to borrow another $220 billion this year.
Meanwhile, Tokyo's Nikkei 225 closed up 0.10%, as the shooting of former Japanese Prime Minister Shinzo Abe, who has since died, sent shockwaves through markets.
Oil prices slipped in bumpy trade Friday after rebounding above $100 Thursday. Futures on the US and global benchmarks are headed for a weekly loss as concerns about demand — driven by the prospect of recession and China's ongoing "COVID-zero" curbs — outweighed worries about tight supply.
US benchmark WTI crude was down 0.34% at $102.33 a barrel, while Brent crude was down 0.14% at $104.50 a barrel.
Here's how the other major asset classes are performing:
- Bond yields flattened, with US 2-year yields slipping 2.5 basis points to 3.02% and US 10-year yields falling 2.4 basis points to 2.98%.
- Gold dipped 0.18% ahead of the jobs report, to $1,736.50 an ounce.
- The US Dollar Index climbed 0.27% to 107.42, and bitcoin rallied 6.02% to top $21,700.