Here are the top news, trends and analysis that investors need to start their trading day:
1. Dow rebounded from Thursday’s steep sell-off
Traders on the trading floor of the New York Stock Exchange.
Source: NYSE
Dow futures bounced ahead of the government’s latest employment report on Friday and after a sharp drop on Wall Street. Federal Reserve Chairman Jerome Powell was unable to reassure investors on Thursday that the central bank would keep rising bond yields and inflation under control. The Dow closed 345 points, or 1.1%, lower in a wild session on Thursday, with the average of 30 stocks at any stage more than twice lower than that. The S&P 500 was down 1.3%. The Nasdaq was the big loser of the day, falling more than 2% and closing nearly 10% from its Feb. 12 record. The index also went negative for the year. As of Thursday’s close, the Dow and S&P 500 maintained small gains in 2021.
2. Employers probably added more jobs in February
The Labor Department will release its February employment report at 8:30 a.m. ET. Economists expect 210,000 non-farm payrolls to be added last month, compared to just 49,000 in January. The country’s February unemployment rate remains stable at 6.3%, although that level is likely to continue to decline in the coming months as more people are vaccinated against Covid-19 and service jobs return.
3. The interest on 10-year Treasury bonds is over 1.5% before jobs report and after Powell
Federal Reserve Chairman Jerome Powell speaks at a Senate Banking Committee hearing on Capitol Hill, Washington, Dec. 1, 2020.
Al Drago | Swimming pool | Reuters
10-year government bond yields rose on Friday to trade around 1.56%, towards last week’s high. Interest rates have risen rapidly since the end of January, fueling fears of inflation. Powell did little to address those concerns and acknowledged that he expects some inflationary pressures. However, he also said that rising prices probably won’t be enough to push the Fed to raise interest rates. The market was looking for Powell to tackle the recent rise in bond yields more directly, with a possible nod to adjusting the Fed’s buyback program.
4. Senate Approaches Covid Voting Bill After GOP Delay
Members of the National Guard will gather outside the Capitol Building in Washington, DC, USA on Thursday, March 4, 2021.
Stefani Reynolds | Bloomberg | Getty images
The Senate debate over the Democrats’ $ 1.9 trillion coronavirus aid package will continue as lawmakers try to pass a deadline to prevent federal unemployment aid from expiring. The Senate voted on Thursday to start the debate on the bailout package, paving the way for approval as soon as possible this weekend under rules that allow for passage by a simple majority. Vice President Kamala Harris had to break a 50-50 stand after a vote in the equally divided chamber. As soon as the Senate began to consider the bill, Senator Ron Johnson, R-Wis., Forced the chamber clerks to read aloud the full 628-page measure.
5. Interstate Connecticut easing some virus-related restrictions
Pharmacist Madeline Acquilano inoculates public school safety officer Victor Rodriguez with the Johnson & Johnson Covid-19 vaccine at Hartford Hospital in Hartford, Connecticut on March 3, 2021.
Joseph Precious | AFP | Getty images
Connecticut will ease many Covid restriction restrictions on businesses, theaters, churches and travel within two weeks. But Democratic Ned Lamont government said on Thursday that the mask mandate will remain in effect statewide. Connecticut is one of several states to relax virus restrictions, despite repeated warnings from health officials that opening too soon could risk another deadly wave in the US. .
– The Associated Press contributed to this report. Follow all developments on Wall Street in real time with CNBC Pro’s live market blog. Read the latest news about the pandemic with our coronavirus blog.