Stocks climb as jobs report dims hawkish FED bets
U.S. equity futures slipped Monday as investors mulled the outlook for Federal Reserve stimulus support and OPEC+ tension over oil.
The S&P 500 ended Friday up 32.40 points, or 0.75%, to 4352.34. The Dow Jones Industrial Average climbed 152.82 points, or 0.75%, to 34786.35. The Nasdaq Composite rose 116.95 points, or 0.81%, to 14639.33.
Front-end investors continued to clamour for T-bills at Thursday’s auctions amid concerns that supply will be harder to come by as the Treasury prepares to slash issuance ahead of the potential debt ceiling reinstatement.
European equities gained slightly on Friday as investors weighed stronger-than-forecast U.S. jobs growth against concerns about the impact of the fast-spreading delta virus strain. Stoxx 600 Europe Index gained 0.26%, DAX climbed 0.30%, while CAC 40 lost 0.20%, and FTSE 100 dropped by 0.273%.
European rates trades are dominated by summer supply dynamics, while strategists see the rally in Italy as nearing its end with focus turning to Portugal and Spain.
Asian stocks were mixed on Monday amid growing worries about China’s crackdown on local tech companies, paring earlier gains made after a welcome U.S. jobs report drove global shares to a record high.
The region’s biggest markets, Japan and China, both declined. The Nikkei fell 0.64% following a surge in COVID-19 infections in Tokyo, just weeks before the city hosts the Olympics.
Chinese tech firms slumped amid concerns over Beijing’s crackdown on ride-hailing giant Didi Global and scrutiny of other platform companies in the country.
Brent oil was steady ahead of another round of critical OPEC+ discussions to break a stalemate over raising production, with tension rising over the weekend between two long-time allies.
Talks are set to resume later Monday after ending Friday without an agreement due to demands from the United Arab Emirates for better terms for itself. The impasse has led to a rare diplomatic spat between Saudi Arabia and the UAE and leaves the market guessing how much oil it will get next month.
Brent crude futures rose or 0.31%, to $76.41 a barrel on Friday. U.S. West Texas Intermediate (WTI) crude futures were up 5 cents, or 0.20%, at $75.31 a barrel.