U.S. stock futures slip as rally to begin 2023 loses steam By Investing.com

By Scott Kanowsky 

investing.com — U.S. stocks are seen opening lower on Friday, with the S&P 500 index on pace for its worst weekly decline since December, as investors were kept on the defensive by signs that the labor market in the world’s largest economy remains stubbornly strong.

At 07:00 ET (12:00 GMT), the contract was down 133 points, or 0.39%, traded 25 points, or 0.62% lower, and tech-heavy dropped 140 points, or 1.13%.

A rally on Wall Street that has highlighted trading so far in 2023 sputtered on Thursday, as traders mulled over how much strength in the U.S. labor market could impact the path ahead for Federal Reserve hikes.

Recent economic data has suggested that the jobs market is still tight despite the elevated borrowing costs, leading some observers to conclude that the Fed may have to keep rates higher for longer. Labor Department data on Thursday showed that the number of people after being laid off rose to the highest level in four weeks last week, but remained at a historically low level.

According to separate figures last Friday, employers also than expected in January, while dipped to a 53-year low of 3.4%.

The blue-chip closed down by 249 points, or 0.73%, the broad-based lost 0.88%, and the dropped by 1.02%.

Investors have the chance to examine more economic data today, including the University of Michigan’s latest . Fed policymakers and will also be delivering closely-watched speeches.

In corporate news, U.S.-listed shares in Adidas (OTC:) are under pressure after the sportswear group warned that its dispute with rapper Ye may cause a steep loss in 2023. The stock’s German listing (ETR:) shed more than a tenth of its value in European trading.

Meanwhile, PayPal Holdings Inc (NASDAQ:) beat expectations for quarterly and said CEO Dan Schulman plans to retire at the end of the year.

The parade of corporate earnings is set to be lighter on Friday. Next week, some of the biggest names due to report are Coca-Cola (NYSE:), AIG (NYSE:), Kraft Heinz (NASDAQ:), and Applied Materials (NASDAQ:).

Elsewhere, oil prices moved up after Russia announced that it will slash its monthly crude production by about 500,000 barrels a day to retaliate against price caps instituted by western nations. The oil market was also supported by supply constraints stemming from disruptions in Turkey.

By 07:00 ET, futures rose 2.23% to $79.80 a barrel, while the contract gained 2.26% to $86.41 per barrel.

Additionally, traded 0.13% lower to $1,876.05/oz, while dipped 0.34% to 1.0699.