Key Facts
• On August 4, S&P 500 futures rose 0.4% during Asian trading hours.
• The index had recorded its largest drop since May on the previous Friday.
• Asian stocks initially fell 0.5% but rebounded to a 0.1% gain.
• U.S. 10-year Treasury yields increased by 4 basis points to 4.25%.
• Crude oil prices dropped following OPEC+ production increase decisions.
• Gold prices fell 0.2%, while the U.S. dollar remained stable.
• Weak U.S. labor data raised expectations for Federal Reserve rate cuts.
• The unemployment rate rose, and job growth slowed significantly in July.
• September rate cut probability exceeded 80% in the overnight index swap market.
• Analysts predict a potential 0.5% rate cut by the Federal Reserve.
Summary
S&P 500 futures rose 0.4% on August 4, reversing last week’s sharp decline, as weak U.S. labor data fueled expectations of Federal Reserve rate cuts. Asian stocks also rebounded, while U.S. Treasury yields climbed to 4.25%. Crude oil prices fell due to OPEC+ production increases, and gold dropped 0.2%. Analysts anticipate a September rate cut, with some predicting a 0.5% reduction. The labor market showed signs of strain, with slower job growth and a higher unemployment rate, prompting speculation about economic support measures.
