Waller's Comments Calm Rate Hike Fears Ahead of NFP Report
US stocks are poised for a modestly higher open following Fed Governor Christopher Waller's dovish remarks, which have calmed inflation fears ahead of today's nonfarm payroll report. The market has quickly rein in rate hike expectations for September to 50%, down from 63% just a day ago.
The unemployment rate is expected to hold steady at 4.1%, while the labor market will be assessed to see whether recent weakness is short-lived or becoming more serious. Weaker-than-expected jobs data could lead to further decrease in rate hike expectations, while above 100,000 jobs created may push rate hike expectations up.
Lululemon's shares are falling 17% after its second-quarter results missed revenue estimates and issued a guidance cut, while AMC has jumped over 5% after its CEO slammed Robinhood over stock tokens. Rare earth stocks are rising due to reports of Chinese firms halting US shipments due to geopolitical concerns.
The S&P 500 trades above its rising trend line, maintaining a constructive outlook, with the uptrend intact as long as support at 7,615 holds. On the downside, a break below 7,615 exposes the 50 EMA at 7,590 and the rising trend line support.