Here are the most important news, trends, and analysis investors need to start their trading day:
1. Dow prepares to rally after Thursday’s strong sell-off
Traders on the floor of the New York Stock Exchange.
Dow futures rallied on Friday before the latest government employment report and after a sharp slide on Wall Street. Federal Reserve Chairman Jerome Powell failed to assure investors Thursday that the central bank would keep bond yields and inflation under control. The Dow Jones closed 345 points, or 1.1%, lower Thursday in a wild session in which the 30-share average more than doubled in one stage. The S&P 500 fell 1.3%. The Nasdaq was the big loser of the day, sinking more than 2% and closing almost 10% from its all-time high on February 12. The index was also negative for the year. At the close of Thursday, the Dow and the S&P 500 held little gains in 2021.
2. Employers probably added more jobs in February
The Department of Labor will issue its February employment report at 8:30 am ET. Economists expect 210,000 nonfarm payrolls to be added last month compared to just 49,000 in January. The nation’s unemployment rate in February is expected to remain stable at 6.3%, although in the coming months that level is likely to continue to decline as more public gets vaccinated against Covid-19 and jobs in the COVID-19 sector return. services.
3. 10-Year Treasury Yield Stays Above 1.5% Before Employment Report and Post Powell
Federal Reserve Chairman Jerome Powell speaks during a Senate Banking Committee hearing on Capitol Hill, Washington, on December 1, 2020.
Al Drago | Swimming pool | Reuters
The yield on 10-year Treasuries rose on Friday, trading around 1.56%, advancing toward a one-year high from last week. Yields have risen rapidly since the end of January, stoking inflationary fears. Powell did little to allay those concerns, acknowledging that he sees some inflationary pressures in the future. However, he also said that rising prices probably won’t be enough to push the Fed to raise interest rates. The market had been looking to Powell to address the recent surge in bond yields more directly, with a possible nod to tightening the Fed’s asset purchase program.
4. Senate Closes In On Covid Relief Bill Votes After GOP Delay
Members of the National Guard gather in front of the US Capitol in Washington, DC, USA, on Thursday, March 4, 2021.
Stefani Reynolds | Bloomberg | fake images
Debate in the Senate over Democrats’ $ 1.9 trillion coronavirus aid package will continue as lawmakers try to beat a deadline to prevent an increase in federal unemployment assistance from expiring. The Senate voted Thursday to begin debate on the bailout package, setting the stage for its approval as soon as this weekend under rules that allow approval by a simple majority. Vice President Kamala Harris had to break a 50-50 tie after a party line vote in the evenly split chamber. As soon as the Senate began considering the bill, Senator Ron Johnson, R-Wisconsin, forced the House Clerks to begin reading the entire 628-page measure aloud.
5. Connecticut among states that ease some virus-related restrictions
Pharmacist Madeline Acquilano vaccinates Public School Safety Officer Victor Rodriguez with the Johnson & Johnson Covid-19 vaccine at Hartford Hospital in Hartford, Connecticut, on March 3, 2021.
Joseph Prezioso | AFP | fake images
Connecticut will relax many Covid mitigation restrictions in two weeks in businesses, theaters, churches, and travel. But Democratic Gov. Ned Lamont said Thursday that the statewide mask mandate will remain in effect. Connecticut is among many states easing virus restrictions, despite repeated warnings from health officials that opening too fast could risk another lethal wave in the U.S. this week, Republican governors of Mississippi and Texas went one step further, ending its states’ mask mandates as well. like your Covid restrictions.
– Associated Press contributed to this report. Follow all the developments on Wall Street in real time with CNBC Pro’s Live Market Blog. Get the latest on the pandemic with our coronavirus blog.