US stock futures showed little change on Wednesday night, as traders anticipated the upcoming jobs report for June.
S&P 500 futures and Nasdaq 100 futures were slightly up, while Dow Jones Industrial Average futures dipped 21 points, which is less than 0.1%.
Earlier in the day, the S&P 500 climbed 0.47%, reaching new all-time highs. The Nasdaq Composite saw even better performance, rising by 0.94% and also closing at a record high. The Dow, however, ended with a slight downturn of 0.02%.
This market movement came shortly after President Donald Trump announced a trade deal with Vietnam. Under this agreement, goods produced in other countries but shipped through Vietnam to the US will face a 40% tariff.
Despite the positive news, there was a sense of uncertainty, especially since reports from ADP indicated a decline of 33,000 jobs last month.
Traders are now looking ahead to the Bureau of Labor Statistics’ June Non-Farm Payroll report. Economists surveyed by Dow Jones predict the economy added around 110,000 jobs in June, which is less than the 139,000 added in May. They also expect the unemployment rate to rise slightly to 4.3%, up from 4.2% in May.
Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, mentioned that if the employment report doesn’t meet expectations, investors might shift focus from speculative tech stocks to more stable options.
“Tomorrow could be a bit risky,” he noted in a conversation with CNBC. He pointed out that tech stocks make up about 40% of the market, and a decline in that sector could impact the overall market negatively.
Conversely, a disappointing employment report might push the Federal Reserve to consider quicker rate cuts, possibly as soon as July, Hatfield added.
Meanwhile, investors are closely watching the progress of Trump’s tax bill, which passed the Senate on Tuesday and is now heading back to the House for further negotiations among Republicans.
This Thursday, the New York Stock Exchange and Nasdaq will close early at 1 PM, leading up to a market closure on Friday for Independence Day.
