Markets today: the jobs report lands after a sharp tech selloff

The monthly jobs report arrives at 8:30 a.m. ET, one session after a sharp selloff in technology and chip stocks pulled the Nasdaq Composite down more than five percent. Payrolls headline a full slate of labor data today, and the University of Michigan’s preliminary consumer sentiment reading follows mid-morning. The October inflation report comes next Tuesday. After a week dominated by the chip trade, the calendar sets the agenda for a session.

On the calendar today

The labor data arrives in one block at 8:30 a.m. ET. Nonfarm payrolls are forecast at 65,000 after 29,000 the prior month, and the unemployment rate is seen holding at 4.2%. Average hourly earnings are forecast to rise 0.3% on the month after 0.1%, and 2.9% from a year earlier after 3.0%. The labor force participation rate stood at 61.8% last time. At 10:00 a.m. ET, the University of Michigan releases its preliminary consumer sentiment index, forecast at 48.0 after 46.3. The Baker Hughes gas rig count, last reported at 130, closes the slate at 2:00 p.m. ET.

Backdrop

Thursday’s decline was led by technology. The Nasdaq Composite fell 5.52% to 24,315.00, the S&P 500 lost 4.36% to 7,353.73, and the Dow Jones Industrial Average dropped 3.44% to 51,523.06. Semiconductors and related hardware names bore the brunt. Micron Technology fell 17.5%, Advanced Micro Devices 17.3%, Dell Technologies 14.9%, Vertiv Holdings 14.0% and Arm Holdings 13.1%. Defensive names held firmer, with Costco and Duke Energy among the small group of gainers. The Cboe Volatility Index stood at 27.23, and the 10-year Treasury yield eased to 4.90%.

The week ahead

• Monday: no major U.S. data scheduled. Earnings from Constellation Energy Corporation and Occidental Petroleum Corporation.
• Tuesday: the consumer price index at 8:30 a.m. ET. Headline prices are forecast to rise 0.3% on the month after 0.6%, with the prior annual rate at 3.7%. Core prices are seen up 0.2% after 0.3%, with the prior annual rate at 2.6%.

What to watch

• The jobs number. October payrolls and the unemployment rate are the session’s main event and the broadest monthly look at hiring. The figures arrive at 8:30 a.m. ET, with average hourly earnings in the same release.
• The chip trade. Semiconductors led Thursday’s drop and were the most-discussed group in the overnight headlines. The sector carries heavy weight in the major indexes, so how these names open tends to steer the broad tape.
• The tone underneath. Thursday’s selling concentrated in technology and chip stocks while defensive sectors such as consumer staples and utilities held firmer, a split worth watching as the labor data lands and sets the mood for the session.

This is a general-market summary for information only — not investment advice, and not a recommendation regarding any security.