U.S. stock futures fell about 0.5 percent on Friday, sitting out a modest recovery in global markets, as investors awaited U.S. payrolls data amid fears that the economy is heading into a rough patch after years of solid growth.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 6, 2018. REUTERS/Brendan McDermid 07 Dec 2018 09:01PM(Updated: 08 Dec 2018 02:37AM) Share this content
REUTERS: Wall Street fell more than 1 percent on Friday, with a drop in technology stocks sparking a turnaround from earlier in the day, as renewed concerns of the China-U.S. trade situation offset the effect of a jump in oil prices and a tepid U.S. jobs report.
The trade standoff between Washington and Beijing has been a major overhang on equities for most of this year and this week has seen the markets sell off on diminishing hopes that their truce, brokered last weekend, would help resolve differences.
These concerns were fanned on Friday by White House trade adviser Peter Navarro’s comments that U.S. officials would raise tariff rates if the two countries could not come to an agreement during the 90-day negotiating period.
Earlier, a Labor Department report showed non-farm payrolls increased by a less-than-expected 155,000 jobs last month. The data was tepid enough to lower bets for faster future interest rate hikes without fanning fears of an economic slowdown.
Stock futures pared losses after the report and the three major indexes moved higher shortly after the open. But the bump was short lived.
“The payrolls data was weaker-than-expected, but at the same time it was sort of a Goldilocks report, and if we didn’t have the lingering U.S.-China trade issue, then the markets would