Sep 4, 2015, (9:10AM EDT)
So, the most awaited jobs reports came in some minutes ago and currency markets, U.S. stock futures and European markets saw a mini earthquake in their respective trading rings.
At first everybody saw only the nonfarm payroll and manufacturing payroll numbers dropping and there was a slight jump in U.S. stock futures, hoping for a delay in the Fed’s rate hike plans.
Then traders noticed the unemployment rate that had come down!
That’s what the Fed is targeting for a rate hike, drop in unemployment rate!
So, U.S. stock futures and European markets fell more quickly and by bigger numbers than the increase had come a few seconds earlier.
Dow Jones futures dropped by -250 points in knee jerk reaction. Although these numbers have recovered slightly (-222 at the time of writing), but a gap down opening will bring this mega index close to breaching its major support of 16,000 in this session.
Will that happen? If it does, how low Dow Jones and broader U.S. markets will close today, considering that markets will start their next session with Chinese markets back in the trading rings on Monday?
All these questions will be answered after the opening bell in U.S. markets.
Keep and eye on 16,000 level for Dow Jones. If that level is breached, U.S. markets will be headed to more losses. If Dow Jones survives that level, then at least for today, U.S. markets could turn range bound and stay within their last two session’s range.
Good luck, enjoy the session.