The stock market is set for yet another drop in prices as the monthly jobs report is set to come out. It has been an interesting few days for the market as it has seen some of its biggest declines since at least 2016 in a few days span. This comes on the heels of having been rising and rising for a long time and setting new highs on nearly a daily basis as well of course.
CNBC reports that the market is posed to head lower once again as the report comes out. The drop in prices may be a pretty significant one, at least on a one-day basis. It is possible that we see as much as a 250 point drop in the Dow Jones Industrial Average right at the beginning of trading, at least based on how the futures market is shaping up at the moment.
What has the market so spooked is not necessarily the jobs report itself, but rather the rising interest rates that can be seen almost anywhere you turn. There are rates increasing in the bond market very rapidly. The Federal Reserve is also hinting that inflation may become a bigger problem in the US economy in the coming months. That could cause them to pull the trigger on raising rates as well. If so, we could all be in for a big of a shock when the market tumbles once again.
It is prime earnings season right now as well. Numerous big name companies have reported or are about to report their earnings in the coming days, weeks, and months. Exxon Mobil, Chevron, and Honda Motor are all expected to put out earnings reports after the closing bell today.
A weaker dollar has meant that higher gas prices are back in vogue. The President has perhaps jokingly suggested that another round of tax cuts is a possibility. In short, there have been no lack of headlines available for market consumption. How the market reacts to these various things is going to be the interesting thing to keep an eye out for. We very well could see a lot of differences between where the market is now, and where we expected it to be at this point in the game. Perhaps those bold predictions about the market just continuing to go higher are something we can all look back on and laugh at in the near future.