🗓 Today's jobs data may impact moods on stocks, USD and bonds!
US index futures trade higher ahead of the NFP release scheduled for 1:30 pm BST. Interestingly, Fed warned in its semiannual report about elevated high asset prices and associated risks. Nevertheless, investors do not seem to care just now - US500 trades 0.2% higher while US2000 gains almost 0.5%.
Median estimate points to an almost 1 million jobs gain in April, what would be another stellar reading following big additions in February and March. Unemployment rate is expected to drop below 6% while wages are expected to drop 0.4% YoY (due to base effect).
US500 broke above 4,200 pts and in case bulls manage to hold onto those gains throughout the Wall Street cash session, it would mark the highest close on the record. Intraday all-time highs were reached on April 29 near 4,210 pts. As one can see on the chart below, US500 saw a positive price reaction to the 25-session moving average. Post-NFP performance of bond yields will be a key factor for stocks, USD and gold. Should today's jobs report hint at more inflationary pressures, TNOTE prices may drop and yields will rise. This could be negative for US500 and gold but positive for the US dollar.
Source: xStation5
