Here are the top news, trends, and analysis investors need to get their trading day started:
1. Dow bounces off Thursday’s steep sell-off
Traders on the floor of the New York Stock Exchange.
Dow futures rebounded on Friday ahead of the latest government employment report and after falling sharply on Wall Street. Federal Reserve chairman Jerome Powell failed to reassure investors Thursday that the central bank would keep rising bond yields and inflation in check. The Dow closed 345 points, or 1.1%, lower Thursday in a wild session that saw the average of the 30 stocks more than double what it was on any notch. The S&P 500 fell 1.3%. The Nasdaq was the big loser that day, falling more than 2% to close nearly 10% of its record high on February 12th. The index also turned negative over the course of the year. At the close of trading on Thursday, the Dow and S&P 500 held on to weak gains of 2021.
2. Employers likely created more jobs in February
The Department of Labor is expected to release its February employment report at 8:30 a.m.CET. Economists expect 210,000 non-farm workers were hired last month, compared with just 49,000 in January. The country’s unemployment rate will remain steady at 6.3% in February, although that level is likely to continue to decline in the coming months as more people are vaccinated against Covid-19 and service jobs return.
3. The yield on 10-year government bonds before the job report and according to Powell is over 1.5%
Federal Reserve Chairman Jerome Powell speaks during a Senate Banking Committee hearing on Capitol Hill in Washington on December 1, 2020.
Al Drago | Pool | Reuters
The 10-year government bond yield rose 1.56% on Friday, moving towards last week’s one-year high. Yields have risen rapidly since late January, fueling inflation fears. Powell has done little to address these concerns, admitting that he sees some inflationary pressures ahead. However, he also said rising prices are unlikely to be enough to spur the Fed to hike rates. The market had been looking for Powell to more directly address the recent surge in bond yields, with a possible hint of an adjustment to the Fed’s asset purchase program.
4th Senate Approaches Covid Relief Bill Votes After GOP Delay
Members of the National Guard gather outside the U.S. Capitol in Washington, DC, United States on Thursday, March 4, 2021.
Stefani Reynolds | Bloomberg | Getty Images
Senate debate over the Democrats’ $ 1.9 trillion coronavirus bailout continues as lawmakers seek to break a deadline to prevent a surge in federal unemployment benefits from draining. The Senate voted on Thursday to begin the bailout debate and set the stage for its approval this weekend under rules that allow it to be passed by a simple majority. Vice President Kamala Harris had to break a 50:50 tie after a party line in the evenly divided chamber. Once the Senate considered the bill, Senator Ron Johnson, R-Wis., Forced the Chamber’s staff to read the entire 628-page move aloud.
5. Connecticut among states easing 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 Precious | AFP | Getty Images
Connecticut will relax many Covid abatement restrictions for businesses, theaters, churches, and travel in two weeks. But Democratic Governor Ned Lamont said Thursday the nationwide mask mandate would remain in place. Connecticut is among many states easing virus restrictions, despite repeated warnings from health officials that opening too quickly could risk another deadly wave in the US. This week, the Republican governors of Mississippi and Texas went a step further and also ended their states’ mask mandates.
– The Associated Press contributed to this report. Follow all developments on Wall Street in real time with CNBC Pro’s live market blog. Find out about the latest pandemics on our coronavirus blog.