Equities finally tumble, dollar unchanged ahead of US labor market data

Thursday saw some massive selling in the equity markets, and nearly all of the major stocks fell sharply.

In the U.S., the Dow Jones Industrial Average closed down 2.8% yesterday, the biggest fall since June, while the SP500 index fell 3.5%, and the tech-heavy Nasdaq posted a 5% drop.

Today, the London session is seeing some buying for now, and indices started to vertically rise once London traders got to their desks. 

Investors are getting anxious ahead of the US NFP report, which is due later today. The Non-farm payroll number is seen rising by 1.4 million, down from 1.76 million in July and well below the 4.8 million jobs scored in June. 

Moreover, employment would still be about 11.5 million below its pre-corona level. Meanwhile, the US’s economic growth seems to be faltering, which might put further pressure on policymakers to introduce new fiscal and monetary stimulus. 

The greenback barely moved yesterday, with the pair finishing Thursday above 1.18. We will probably see some volatility after today’s labor market data.