US futures are flat ahead of the final session of the week, as traders await the August jobs report following Thursday's sharp sell-off.
The tech-led declines have arguably been coming for some time, having made exrtaordinary gains since bottoming out in March. While these losses look sizeable - Apple 12% off its highs, Tesla 19%, Amazon 5% etc - it's worth having a little perspective. They've only slipped to levels they've traded at in the last two weeks, we're just seeing a little bit of the froth coming off these markets.
Naturally, putting firm valuations on stocks that have come so far in such a short period of time when most people struggle to know what the world will look like in six months, let alone years from now, is tough. I don't expect these stocks to fall out of fashion though, I'd actually be surprised if it lasts much longer at all.
The jobs report today may highly influence whether stock markets spend another day in the red, with investors seemingly adopting a wait-and-see approach ahead of the open. The S&P and Dow are seen slightly paring losses while the Nasdaq is slightly in the red. This is the penultimate jobs report before November's Presidential election, not a lot of time for Trump to prove he's overseeing an economy rapidly on the mend. A couple of strong reports could give the President some momentum heading into November 3.
Oil correction may have further to run
Oil is staging a bit of a recovery after tumbling in the middle of the week. Once again, we're facing a market that was struggling to maintain upside momentum and a few headlines provided the catalyst for some profit taking. The consolidation could have continued for longer but once a couple of technical levels fell, it's just accelerated from there. WTI has since found some support just above $40 but $39 is arguably more significant support. It may now find some resistance around $42.
Strong jobs report could spell trouble for gold
Gold is paring losses this morning, having come under significant pressure over the last few days. The US PMI report on Tuesday ruined its attempt to break $2,000 again, with the dollar jumping on the back on the report. Gold now finds itself back around the middle of its $1,900-2,000 range ahead of the jobs report, which could be the next catalyst for the yellow metal. A strong report could see the dollar spike again, with the sell-off currently losing momentum, and spell trouble for the yellow metal.
Related: Wall Street Flat After Broad Surge