Here are the key news, trends and analyzes that investors need to start their trading day:
1. Dow will bounce back after Thursday’s strong sales
Traders on the floor of the New York Stock Exchange.
Source: NYSE
Dow futures bounced off Friday ahead of the government’s latest employment report and after a sharp drop on Wall Street. Federal Reserve Chairman Jerome Powell on Thursday did not give investors the assurance that the central bank would keep rising bonds and inflation in check. The Dow closed 345 points, or 1.1%, lower Thursday in a wild session in which the average of 30 shares was more than twice lower at one point. The S&P 500 fell 1.3%. The Nasdaq was the biggest loser on the day, sinking more than 2% and closing nearly 10% from its record high on February 12th. The index also turned negative towards the year. With the close on Thursday, the Dow and S&P 500 made a low 2021 profit.
2. Employers likely added more jobs in February
The Labor Department will release its work report in February at 08:30 ET. Economists expect 210,000 non-farm payrolls to be added last month, compared to just 49,000 in January. The country’s unemployment rate is seen to be constant at 6.3% in February, but in the coming months the level is likely to fall as more of the public is vaccinated against Covid-19 and jobs in the services sector return.
3. The ten-year treasury yield holds more than 1.5% before the jobs report and after Powell
Federal Reserve Chairman Jerome Powell speaks at a hearing of the Senate Banking Committee on Capitol Hill, Washington, December 1, 2020.
Al Drago | Swimming Pool | Reuters
Ten-year treasury yields rose higher on Friday, trading at around 1.56%, the highest year on last year. Yields have risen sharply since the end of January, prompting fears of inflation. Powell allayed these concerns and acknowledged that he was facing some inflationary pressures. However, he also said that rising prices are unlikely to be enough to encourage the Fed to raise interest rates. The market has been looking for Powell to address the recent rise in bond yields directly, with a possible nod to adjusting the Fed’s asset buying program.
4. Senate Approves Covid Legal Bill After Delaying IDP
Members of the National Guard will gather outside the U.S. Capitol in Washington, DC, USA on Thursday, March 4, 2021.
Stefani Reynolds | Bloomberg | Getty Images
The Senate debate on Democrats’ $ 1.9 billion coronavirus relief package will continue as lawmakers try to meet a deadline to prevent a federal unemployment benefit increase from expiring. The Senate voted Thursday to begin a debate on the rescue package, and as soon as the weekend the arrangement for approval is established, according to the rules that can be allowed by a simple majority. Vice President Kamala Harris had to break a 50-50 tie after a party vote in the equally divided chamber. Once the Senate began considering the bill, Senator Ron Johnson, R-Wis., Forced the clerks of the chamber to read out the entire 628-page measure.
5. Connecticut Between States Relieving Some Virus-Related Restrictions
Pharmacist Madeline Acquilano vaccinates on March 3, 2021 at Hartford Hospital in Hartford, Connecticut, the information officer Victor Rodriguez with the Johnson & Johnson Covid-19 vaccine at Hartford Hospital in Hartford, Connecticut.
Joseph Prezioso | AFP | Getty Images
Connecticut will ease many Covid mitigation restrictions on businesses, theaters, churches and travel within two weeks. But Democratic Gov. Ned Lamont said Thursday the mandate for the entire mask will still apply. Connecticut is among many states that ease virus restrictions, despite repeated warnings from health officials that the opening of a rapid danger could once again cause a deadly wave in the US. The Republican governors of Mississippi and Texas went a step further this week, ending all Covid restrictions, including mask mandates.
– The Associated Press contributed to this report. Follow all the developments on Wall Street in real time with CNBC Pro’s live market blog. Get the latest pandemic information with our coronavirus blog.