U.S. stock futures are trading lower Monday morning as strong jobs data dampened expectations that the Federal Reserve will cut interest rates anytime soon.
As of 05:00 a.m. ET, Dow futures fell 43 points, indicating a drop of 78 points at the open. S&P 500 and Nasdaq futures were also in negative territory.
Market participants were reacting to a solid jobs report from Friday. The U.S. economy added 224,000 jobs in June, official payrolls data showed, way above an expected increase of 165,000.
Traders had been betting heavily on the prospect of a Fed rate cut at the central bank’s next policy meeting, amid fears of a slowdown in global economic growth. At its last meeting, the Fed said it would “act as appropriate” to maintain the current U.S. economic expansion, which is the longest in history.
Source : CNBC