US Stock Index Futures: All You Need To Know

Following better-than-expected May payrolls data on Friday, US stock index futures fluctuated erratically but finally fell. Following reports that Tesla Inc. was considering layoffs, the technology sector was leading the way down.

What is the trading process for stock-index futures?

At 4,134.70, S&P 500 futures have fallen 1.8% from their previous close.

As the YM00 futures of the DJIA fell by 214 points, it fell by 6% to 33,000.

A decline of 194 points, or 1.5%, in the NQ00 futures index, sent the index down to 12,701 points.

An uptick in the DJIA, +1.33 percent ended the afternoon slightly below its session high of 33,248.28 after gaining 435.05 points (1.3 percent). Both the S&P 500 SPX, +1.84%, and the Nasdaq Composite Index INDX, +2.76% ended the day with gains of 1.8 and 2.7 percent, respectively.

According to FactSet data, the three indices each saw their greatest single-day percentage increase since May 27. According to FactSet Research, all three indices are anticipating minor weekly gains, except for the Nasdaq, which is up 1.5 percent as of Thursday.

What motivates the markets?

Nonfarm payrolls increased by 390,000 more than anticipated in May, according to statistics scheduled at 8:30 a.m. ET, compared to an upwardly revised rise of 328,000 in April. For May, the unemployment rate remained at 3.6%, while the average hourly wage grew by 0.3 percent to $31.95 per hour.

Treasury note yields rose by 5 basis points to 2.964%, up from 2.963% earlier. As prices rise, yields fall. A 0.5% decline in gold prices (GC00, -0.52%) brought the metal’s price to $1,861.10.

According to Reuters, Tesla CEO, Elon Musk sent an email to executives telling them to “halt all worldwide recruiting” and to reduce worker numbers by 10%. In an interview with NBC News, he was cited as remarking that his economic outlook was “very awful.”

On the Nasdaq futures market, Tesla shares were down 4% in premarket trade. Microsoft MSFT, +0.79 percent issued a cautionary statement on Thursday, although the company’s shares were also down around 1%.

Some voices on Wall Street are becoming more and more pessimistic. CEO Jamie Dimon of JPMorgan Chase warned earlier this week of an “economic cyclone” owing to inflation, the conflict in Ukraine, and tighter monetary policy.

Larry Fink, CEO of Blackrock BLK, +3.96 percent, told Bloomberg on Thursday that he expects inflation to remain high for years to come and that “bouts of anxiety” will exacerbate market volatility even more.

Which businesses are being scrutinized?

It was a day after the wealthy Winklevoss twins, who run their own cryptocurrency company, Gemini, announced job layoffs, that Coinbase Global Inc. COIN, +7.56 percent saw its shares fall 4%.

However, although the security-software company’s results, sales, and outlook were above forecasts and raised annual guidance, Crowdstrike Holdings Inc. (CRWD, +7.79%) shares declined by 4%.

US Airways Inc. AAL, +0.98% shares dipped 1% in premarket trade after the airline upped revenue growth, but reduced capacity projections and increased fuel-cost estimates.

What are the prices of other assets?

The price of oil was somewhat higher. oil CL.1, 0.34% up 0.2 percent to $117.21 a barrel in the United States. International benchmark Brent BRN00, +0.39 percent, climbed 0.4% to $118.13 a barrel.

One basis point was added to the ICE US Dollar Index DXY, +0.33%

Bitcoin BTCUSD, -2.22 percent dropped to under $30,000 after falling 1.2 percent.

The Stoxx Europe 600 index SXXP, +0.08% was unchanged, while London markets were closed for an extended Queen’s Jubilee bank holiday celebration.

There was also a public holiday in China and Hong Kong. The Nikkei 225 index NIK, +1.27% rose 1.2%.