Wall Street remained closed for Good Friday, but U.S. stock futures edged lower in thin holiday trading following the release of a stronger-than-expected March jobs report. The muted reaction suggests investors are weighing the implications of sustained labor market strength against ongoing inflation concerns.
The Labor Department reported nonfarm payrolls increased by 303,000 in March, significantly exceeding economist forecasts of 200,000. The unemployment rate ticked down to 3.8%, while wage growth moderated slightly to 4.1% year-over-year.
‘This goldilocks report shows the economy isn’t overheating but remains resilient,’ said a market strategist at a major investment bank who spoke on condition of anonymity due to company policy. ‘The question now is whether this gives the Fed more runway to keep rates higher for longer.’
Trading volumes were exceptionally light with the New York Stock Exchange and Nasdaq closed for the holiday. S&P 500 futures declined 0.3% in electronic trading, while Nasdaq 100 futures fell 0.5%.
Analysts noted the jobs data could delay anticipated Federal Reserve rate cuts, with fed funds futures now pricing in just two 25-basis-point reductions this year versus three projected earlier. The 10-year Treasury yield climbed 6 basis points to 4.39% in overseas trading.