US Open – Jobs Report Eyed Amid Tech Correction

How long can tech sell-off last?

US futures are flat ahead of the final session of the week, as traders await the August jobs report following Thursday’s sharp sell-off.

The tech-led declines have arguably been coming for some time, having made exrtaordinary gains since bottoming out in March. While these losses look sizeable – Apple 12% off its highs, Tesla 19%, Amazon 5% etc – it’s worth having a little perspective. They’ve only slipped to levels they’ve traded at in the last two weeks, we’re just seeing a little bit of the froth coming off these markets.

Naturally, putting firm valuations on stocks that have come so far in such a short period of time when most people struggle to know what the world will look like in six months, let alone years from now, is tough. I don’t expect these stocks to fall out of fashion though, I’d actually be surprised if it lasts much longer at all.

The jobs report today may highly influence whether stock markets spend another day in the red, with investors seemingly adopting a wait-and-see approach ahead of the open. The S&P and Dow are seen slightly paring losses while the Nasdaq is slightly in the red. This is the penultimate jobs report before November’s Presidential election, not a lot of time for Trump to prove he’s overseeing an economy rapidly on the mend. A couple of strong reports could give the President some momentum heading into November 3.

Economic Calendar

For a look at all of today’s economic events, check out our economic calendar.

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam