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US STOCKS-Futures slip on rate-hike worries ahead of payrolls data

By Reuters_News

10:59, 9 March 2023

A file photo of a trader working on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 7, 2023.
A file photo of a trader working on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 7, 2023.

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.

Futures down: Dow 0.19%, S&P 0.37%, Nasdaq 0.68%

- U.S. stock index futures fell on Thursday as labor market strength and Federal Reserve Chair Jerome Powell's remarks keep investors worried about rate hikes as they await a key jobs report that could determine the Fed's policy path.

With economic data so far suggesting the labor market remains hot despite the Fed's aggressive monetary tightening over the past year, investors are now focused on the February non-farm payrolls report due on Friday.

The reading is expected to show payrolls increased by 205,000 last month, according to economists polled by Reuters, after January's blowout 517,000 figure, which had first led markets to reprice their expectations for U.S. interest rates.

"Our US economists expect a positive surprise to payrolls on Friday," said Citi strategists in a note published late on Wednesday.

"Given that good news is bad news for markets, we think this would likely cause equities to sell-off further and support the case for an outsize Fed hike."

Before the payrolls data, a separate report from the Labor Department due at 8:30 am ET on Thursday is expected to show an uptick in initial claims for state unemployment benefits for the week ended March 4.

Wall Street's main indexes ended mixed on Wednesday, with the benchmark S&P 500 .SPX eking out marginal gains after Powell reaffirmed his message of likely sharper interest rate hikes, but emphasized that the decision hinged on economic data before the central bank's March meeting.

Powell's two-day testimony has led markets, which until recently had been expecting a 25-basis-point rate hike, to dramatically increase their bets for a larger 50 bps increase by the Fed in March, with rates now seen peaking at 5.65% by September.


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+0.030% 1D Chg, %
Long position overnight fee -0.0180%
Short position overnight fee 0.0098%
Overnight fee time 21:00 (UTC)
Spread 0.30

Natural Gas

2.13 Price
+0.190% 1D Chg, %
Long position overnight fee -0.4441%
Short position overnight fee 0.4222%
Overnight fee time 21:00 (UTC)
Spread 0.005

Oil - Crude

74.33 Price
-0.050% 1D Chg, %
Long position overnight fee -0.0170%
Short position overnight fee -0.0049%
Overnight fee time 21:00 (UTC)
Spread 0.03


28,100.45 Price
-0.290% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00

Nasdaq futures led declines on Thursday, with shares of Tesla Inc TSLA.O down 3.1% in premarket trade and set to extend its losses from the previous session on news of a probe by the U.S. auto safety regulator.

Other Big Tech and growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Inc AMZN.O fell between 0.7% and 0.8%.

At 5:22 a.m. ET, Dow e-minis were down 62 points, or 0.19%, S&P 500 e-minis were down 14.75 points, or 0.37%, and Nasdaq 100 e-minis were down 83.75 points, or 0.68%.

Reporting by Amruta Khandekar in Bengaluru, additional reporting by Medha Singh
Editing by Vinay Dwivedi

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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