U.S. stock futures opened modestly higher, up 0.1%, while S&P 500 futures rose 0.3%.
The index was relatively unchanged, as was the . Meanwhile, the 10-year Treasury note yield stood at 3.903% as of 18:05 EST (22:05 GMT).
The focus is on the labor market
Investors are turning their attention to a crucial week for US markets, with much anticipation for upcoming labor market data. Last month’s jobs report missed expectations, triggering a sell-off in risk assets that began with the previous day’s disappointing ISM manufacturing PMI.
The lackluster jobs numbers have sparked debates about their cause, with Hurricane Beryl being a major factor. Although the Bureau of Labor Statistics (BLS) claimed that the hurricane, which hit Texas during the week of the July jobs report survey, had “no discernible effect” on the employment data, the household survey revealed a different impact.
It was reported that 436,000 people were unable to work due to adverse weather conditions, marking a record for the month of July. In addition, 249,000 people were reported to be on temporary suspension of employment during the same period.
The rise in unemployment has been largely attributed to these temporary layoffs. Market participants are eager to determine whether the July data was indeed influenced by such transitory factors.
The Federal Reserve, which closely monitors the labor market, will use this upcoming report to decide the magnitude of its interest rate cut at its next meeting, with the options being a 25 basis point (bp) or 50 bp reduction.
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