FX.co ★ U.S. Stocks May Come Under Pressure Following Strong Jobs Data

Following a relatively uneventful trading session yesterday, stocks are anticipated to face downward pressure as markets open on Friday. Major index futures forecast a lower opening, with S&P 500 futures dropping by 0.4 points.

This shift comes in the wake of a significant Labor Department report indicating higher-than-expected job growth for May. According to the report, non-farm payroll employment surged by 272,000 jobs, following a revised increase of 165,000 jobs in April. Economists had projected a rise of approximately 185,000 jobs, compared to the previously reported 175,000 for April.

Additionally, the report noted a slight increase in the unemployment rate, moving up to 4.0 percent in May from 3.9 percent in April, contrary to expectations for it to remain steady.

While the strong employment data may alleviate ongoing concerns about the U.S. economy's robustness, it could also temper recent optimism regarding the outlook for interest rates. Following the report's release, Treasury yields have surged, with the ten-year yield rebounding from its lowest levels in over two months.

Wednesday's stock market rally was followed by a subdued performance on Thursday, with the major averages experiencing a day of fluctuating trades before closing marginally mixed. The Dow edged up by 78.84 points, or 0.2 percent, to close at 38,886.17. Meanwhile, the Nasdaq dipped by 14.78 points, or 0.1 percent, to 17,173.12, and the S&P 500 slipped by 1.07 points, or less than a tenth of a percent, to 5,352.96.

In international markets, Asian-Pacific stock indices presented a mixed picture on Friday. Japan's Nikkei 225 Index fell slightly by 0.1 percent, Hong Kong's Hang Seng Index declined by 0.6 percent, while China's Shanghai Composite Index nudged up by 0.1 percent, and South Korea's Kospi surged by 1.2 percent.

European markets have also shown a downward trend for the day, with the U.K.'s FTSE 100 Index down by 0.7 percent and both Germany's DAX Index and France's CAC 40 Index falling by 1.0 percent.

In commodities, crude oil futures are on the rise, gaining $0.30 to reach $75.85 a barrel, following a $1.48 increase to $75.55 a barrel on Thursday. Conversely, gold futures have plummeted by $53.10 to $2,337.80 an ounce after climbing $15.40 to $2,390.90 an ounce in the previous session.

On the currency front, the U.S. dollar is trading at 156.67 yen, up from 155.61 yen at Thursday's close in New York. Against the euro, the dollar is valued at $1.0833, down from yesterday’s $1.0890.