Key insights
- US stock futures extended declines following a stronger-than-expected May non-farm payrolls report, which showed 172,000 jobs added versus an estimate of 85,000. This data reinforces expectations that the Federal Reserve may hike interest rates later this year, increasing borrowing costs and potentially dampening corporate earnings and economic growth. The unemployment rate held steady at 4.3%. The market's reaction indicates a bearish sentiment towards equities due to the increased likelihood of tighter monetary policy.
June 5 (Reuters) - U.S. stock index futures extended declines on Friday after a stronger-than-expected jobs report further fueled expectations for the Federal Reserve to hike interest rates this year.
A Labor Department report showed the U.S. economy added 172,000 jobs last month, compared with economists' estimates for a rise of 85,000. The unemployment rate stood at 4.3%, in-line with expectations of 4.3%.
At 08:32 a.m. ET, Dow E-minis were down 17 points, or 0.03%, S&P 500 E-minis were down 47.75 points, or 0.63%, and Nasdaq 100 E-minis were down 406.75 points, or 1.33%.
(Reporting by Twesha Dikshit; Editing by Shinjini Ganguli)