US stock index futures little changed after showing gains in yesterday's regular session ahead of a three-day weekend and the release of the jobs report.
European markets and US stock markets are closed for Good Friday. Meanwhile, the US government is releasing its Non-Farm Employment Change report today, which traders will be scrutinizing for clues about the Federal Reserve's next policy move.
While most of Asia, including Australia, Hong Kong, and Singapore are also closed for the holidays, financial markets in Japan and mainland China were open. Japan's benchmark Topix rose, ending a two-day decline. Stock indices in China and South Korea also gained.
Yesterday's data showed that jobless claims exceeded estimates. The day before the private sector employment report was released, where hiring slowed more than forecasted.
Today's nonfarm payrolls report is expected to show that hiring is still quite strong and the economy created about 230,000 jobs in March. The overly strong labor market numbers will undermine investor expectations, leading investors to revise their interest rate forecasts, and reinforcing fears of a hard landing.
Yesterday, St. Louis Fed President James Bullard said he did not think that the tightening of credit conditions that led to the recent banking turmoil would lead to a recession in the economy. Meanwhile, the International Monetary Fund warned that global economic growth prospects for the next five years were the weakest in more than three decades and urged countries to avoid economic fragmentation caused by geopolitical tensions and to take steps to improve productivity.
Yesterday, the two-year Treasury bond yield rose for the first time in five sessions, adding 5 basis points to 3.83%.
As to the S&P 500 index, the demand for risky assets returned, but it remains unclear how the market will react on Monday to today's data. The index may continue to grow if bulls manage to drag the price above $4,116 and $4,150, pushing it higher to $4,184. In addition, bulls need to fix the price above $4,208, strengthening the bull market. If the S&P 500 index declines amid the lack of demand, bulls will have to prevent the price from falling below $4,090. Breaking through this level from above, the trading instrument may plummet to $4,060 and $4,038.
