US equities likely to applaud the labor market strength

FXStreet (Mumbai) - The activity in the US index futures indicates the Wall Street is likely to open on a positive note after the monthly Non-farm payrolls data printed way higher than the market expectation.

At the time of writing, the DJIA futures are trading 0.15% higher, while the S&P futures are up 0.02%. The NASDAQ futures have gained 0.11%, while the S&P VIX futures have weakened by 1.79%.

The labor department data released earlier today showed the economy added whooping 321K jobs in November, beating market expectations of 230K additions. Meanwhile, the unemployment rate remained steady at 5.8%. Post open, the Commerce Department is also due to release a report on factory orders in the month of October. However, the report is not likely to attract much attention amid the focus on the jobs data.

It will be interesting to see how the stock markets react throughout the day today, since the stellar jobs data is likely to push up expectations of a sooner-than-expected interest rate hike in the US, something which stock markets usually do not like.

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