U.S. has just released Non Farm Payrolls and Unemployment Rate reports. Non Farm Payrolls report indicated that U.S. economy added just 235,000 jobs in August compared to analyst consensus of 750,000. The previous report was revised from 943,000 to 1.05 million, but this revision cannot explain the major difference between analyst estimates and actual numbers for August.
Unemployment Rate declined from 5.4% in July to 5.2% in August, in line with the analyst consensus.
S&P 500 futures are swinging between gains and losses after the release of weak Non Farm Payrolls report. This is not surprising as market’s rally depends on support from the Fed, so poor job market data may serve as a bullish catalyst for stocks. The Fed is focused on improving the situation in the job market, and weak Non Farm Payrolls report signals that it may be too early to reduce Fed’s asset purchase program.
Precious Metals Gain Ground As Dollar Declines
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, found itself under pressure after the release of Non Farm Payrolls report.
This time, weaker dollar provided enough support to gold and silver . Gold managed to get to the test of the resistance level at $1830 which is bullish for gold mining stocks. Silver made an attempt to settle above the resistance at $24.20. In case the U.S. dollar moves lower, precious metals will get more support.
WTI Oil Moves Above The $70 Level
WTI oil managed to settle above the $70 level and continues to move higher as oil traders remain in a bullish mood.
Recent reports indicated that crude inventories continued to decrease, while OPEC+ decided to stick to its previous plans despite U.S. calls to boost oil production. Weaker dollar served as an additional bullish catalyst for the oil market.
Most likely, oil-related stocks will have a strong start of today’s trading session.