Stock markets remains volatile, with investors on edge as they await the release of crucial jobs data. The Dow Jones Industrial Average opened 100 points higher on Friday, as Wall Street braces for the employment data. However, the Dow Jones dipped slightly after the release of the report which showed that the number of Americans filing for initial jobless benefits unexpectedly rose last week by 4,000 to 353,000.
This news sent shockwaves throughout the market, pushing the value of Silvergate, a digital currency-focused bank, down by 40%. Meanwhile, stocks were mostly muted ahead of the data release, with the S&P 500 and Nasdaq finishing mixed on Thursday. Investors are also keenly observing the Federal Reserve’s economic policies, as many are speculating about potential rate hikes.
Federal Reserve Chair Jerome Powell recently testified before Congress, stating that the continued strength of the labor market is essential to the US economic recovery. This sparked speculation that the central bank may maintain low interest rates for a more extended period than initially anticipated.
Market analysts are predicting that volatility will continue in the coming weeks, as the Fed releases its September FOMC statement next week. Despite the uncertainty, investors remain cautiously optimistic, with many hoping for positive results in the jobs report.