Markets Overview

  • ASX SPI 200 futures down 0.4% to 8,452.00
  • Dow Average down 0.5% to 44,635.69
  • Aussie little changed at 0.6280 per US$
  • US 10-year yield rose 2.1bps to 4.4382%
  • Australia 3-year bond yield fell 1.6 bps to 3.74%
  • Australia 10-year bond yield fell 4 bps to 4.32%
  • Gold spot down 0.5% to $2,853.92
  • Brent futures down 0.5% to $74.26/bbl

Economic Events

  • 16:30: (AU) Jan. Foreign Reserves, prior A$102.3b

Stocks eked out gains as traders parsed mixed earnings ahead of jobs data. Bonds pared losses as Treasury Secretary Scott Bessent reiterated his view on a lower path for 10-year yields under the Trump administration.

Amazon.com Inc. tumbled in late hours after projecting profit that fell short of estimates, suggesting the company continues to ramp up spending to support artificial-intelligence services. In regular trading, Qualcomm Inc. sank on fears demand for new handsets will stall. A bullish outlook lifted Peloton Interactive Inc. while Philip Morris International Inc. hit a record high on solid sales of Zyn nicotine pouches. Ford Motor Co. sank amid a profit warning.

Bessent told Bloomberg he’d refrain from criticizing Federal Reserve Chair Jerome Powell and that the Trump administration is focused on policy moves that result in a lower yield on the 10-year bond, rather than the question of whether officials will deliver rate cuts. He also noted the US continues to have a “strong dollar” policy under President Donald Trump.

In the run-up to the US payrolls report, data showed initial jobless claims picked up, but remained subdued. Separate figures showed solid labor productivity. In addition to the employment print Friday, Wall Street will be closely watching a revision to job growth. Economists predict that will be substantial, but probably not as bad as initially estimated.

“So far, this week’s numbers have highlighted a labor market that doesn’t appear to be doing much hiring or firing,” said Chris Larkin at E*Trade from Morgan Stanley. “We’ll see if tomorrow’s monthly jobs report paints a similar picture. In the meantime, traders may be inclined to sit on their hands.”

The options market is betting the S&P 500 will move 0.9% in either direction after Friday’s US employment figures, data compiled by Piper Sandler show. That would be in-line with an average realized move of 0.9% on jobs day over the past 12 months.

The S&P 500 rose 0.4%. The Nasdaq 100 added 0.5%. The Dow Jones Industrial Average slid 0.3%. A gauge of the “Magnificent Seven” megacaps climbed 0.7%. The Russell 2000 dropped 0.4%.

The yield on 10-year Treasuries advanced two basis points to 4.44%. The Bloomberg Dollar Spot Index was little changed. The British pound fell 0.5%. Bank of England Governor Andrew Bailey cautioned markets against reading too much into how policymakers voted this month after a surprise switch by one official prompted investors to boost bets on more interest-rate reductions.