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Markets Brace for Jobs Report Amidst Trade Policy Uncertainty

Federal Reserve Chair Jerome Powell is scheduled to speak post-report, with investors seeking insights on future monetary policy.

Magnifying glass and newspapers with headline JOBS on white background

What You Need to Know

• U.S. stock futures exhibit cautious optimism ahead of February’s employment data release.
• Economists anticipate an addition of 160,000 jobs in February, maintaining the unemployment rate at 4.0%.
• Federal Reserve Chair Jerome Powell is scheduled to speak post-report, with investors seeking insights on future monetary policy.
• Broadcom (AVGO) reports robust earnings, driven by AI revenue growth, while Hewlett Packard Enterprise (HPE) announces a 5% workforce reduction following weak earnings.

Market Overview

As of Friday morning, U.S. stock futures are slightly higher, reflecting a cautious market ahead of the February jobs report. Economists expect nonfarm payrolls to have increased by 160,000 jobs, keeping the unemployment rate steady at 4.0%. Investors are also awaiting Federal Reserve Chair Jerome Powell’s speech later today for indications on the central bank’s monetary policy direction. 

Earnings Highlights


• Broadcom (AVGO): The semiconductor company reported better-than-expected earnings, with a notable boost from AI-related revenues, leading to a 13% surge in its stock price.
• Hewlett Packard Enterprise (HPE): Following weaker-than-expected first-quarter earnings, HPE announced a 5% reduction in headcount as part of cost-cutting measures, resulting in a 20% drop in its stock value.

Economic Indicators

The February jobs report is expected to show a gain of 160,000 jobs, with the unemployment rate holding at 4.0%. This data will provide insights into the labor market’s resilience amid ongoing trade policy uncertainties. Additionally, Federal Reserve Chair Jerome Powell’s upcoming speech is anticipated to offer guidance on future interest rate decisions.  

The Oracle says:

“Monitor the February jobs report and Chair Powell’s remarks closely, as they will be pivotal in assessing the economic outlook and potential shifts in monetary policy.”

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