Futures Bounce After BOJ Jawbone; Traders Remain On Edge Ahead Of Payrolls

For the second day in a row US equity futures rebounded from an overnight rout that dragged spoos as low as 3,730 as investors kept a worried eye on US TSY yields ahead of key U.S. jobs data which better be crappy or else the reflationary panic may send the Nasdaq to 0 today. Treasuries also reversed an overnight loss, with their yields down one basis point to 1.55%; the dollar continued its advance. Oil surged more than 2% on Friday, hitting their highest in nearly 14 months after OPEC, with Brent rising above $68 after Goldman hiked it Q3 price target to $80.

At 730 a.m. ET, Dow E-minis were up 56 points, or 0.19%, S&P 500 E-minis were up 8.75 points, or 0.23% and Nasdaq 100 E-minis were up 14.50 points, or 0.14%. Contracts on the S&P 500 and Dow Jones Industrial Average turned higher along with those on the tech-heavy Nasdaq 100 after a three-day pullback for the S&P 500 and the Nasdaq, as investors looked to data that is likely to show accelerated jobs growth in February. On Thursday Jerome Powell maintained the central bank’s dovish stance to support maximum employment and said inflation was not a worry at the moment. But as markets made very clear, his comments disappointed investors who expected him to act on the recent spike in the U.S. 10-year Treasury yield that has set the S&P 500 and the Nasdaq on course for their third straight weekly decline, with the tech-heavy index not only sliding negative for the year, but briefly entering a 10% correction from its Feb. 12 intraday record.


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