5 Things to Know Before the Stock Market Opens

Investors are preparing for key monthly U.S. jobs numbers Friday that are expected to show continued strength; U.S. stock futures are edging higher after tumbling Thursday as Minneapolis Fed President Neel Kashkari’s flagged the possibility of no 2024 interest rate cuts if inflation persists and the economy stays robust; Brent crude prices are hovering over $90 a barrel on geopolitical tensions and tight supply, as well as the rate outlook; U.S. Treasury Secretary Janet Yellen says China’s excess manufacturing capacity may spark global economic fallout; and Apple (AAPL) is laying off more than 600 employees in California after it canceled its electric vehicle project. Here’s what investors need to know today.

1. Stock Futures Higher After Thursday’s Plunge on Interest Rate Concerns

U.S. stock futures edged higher in premarket trading after the 30-stock Dow Jones Industrial Average (DJIA) fell more than 500 points in its worst session since March 2023 on Kashkari’s comments as well as a general risk-off sentiment. The S&P 500 fell 1.2% while the tech-heavy Nasdaq and the Dow both posted losses of 1.4% on Thursday.

2. Pivotal Jobs Data Expected to Show Still-Buoyant Labor Market

Market participants are anxiously awaiting employment data from the Bureau of Labor Statistics as a key data point that will influence the Federal Reserve’s stance on interest rates, especially after stocks tumbled Thursday on worries that easing isn’t in the cards this year. The data are expected to indicate a strong labor force, and thus a resilient economy—a potential incentive for the Fed to hold off cutting interest rates soon. The figures are expected to show the economy added 200,000 jobs in March, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. That would be down from 275,000 in February, but above the pre-pandemic average monthly job growth of 191,000.

3. Oil Breaches $90, Setting the Stage for Summer Gas Price Surge

Brent crude futures have risen to over $90 a barrel, a level last breached in late October, buoyed by a magnitude of factors from tight supply triggered by OPEC+ production cuts, geopolitical tensions, and strong consumer demand. The elevated oil prices risk propelling gasoline prices this summer—a busy driving season. They are already having an effect and feeding into gasoline, with average national prices measured by AAA up 15% this year to $3.57 a gallon. Inventories in the U.S. are reportedly also 3% below the recent average for this time of year, close to the lowest for this time of year in the past five years. 

4.  Yellen Says China’s Overcapacity Poses Risks to World Economy

U.S. Treasury Secretary Janet Yellen said on Friday that concerns are growing over the global economic fallout from China’s excess manufacturing capacity, as she kicked off a four-day visit there. Apart from saying China’s factories risk producing more than the world can easily absorb, she also chided China’s government for “unfair” treatment of American and other foreign companies, and called on Beijing to return to the pro-market reforms of the past. China has pursued “unfair economic practices, including imposing barriers to access for foreign firms and taking coercive actions against American companies,” Yellen said in the southern city of Guangzhou.

5. Apple Lays Off More than 600 California Workers After Scrapping EV Project 

Apple (AAPL) is laying off 614 workers in California, according to a new state filing. The layoffs, unusual in the past year for the company while its rivals cut back, come weeks after Apple canceled its plans to build an electric vehicle. While the California notice didn’t mention the specific projects where jobs are being cut, none of the locations in the filing are at Apple’s Cupertino headquarters, but at smaller, satellite offices more likely to house secretive initiatives, according to CNBC.