[Platinum Insights] (7.7.23)

Good morning.

In regular trading on Thursday, the Dow slumped 1.07%, the S&P 500 dropped 0.79% and the Nasdaq Composite tumbled 0.82%, with all 11 S&P sectors ending lower led to the downside by energy and consumer discretionary. Those losses came as data from ADP showed that private sector employers added 497,000 jobs in June, far exceeding the 220,000 estimate and reinforcing expectations for a Fed rate hike this month. 

US stock futures inched lower this morning as markets braced for a key monthly jobs report that could influence the outlook for Federal Reserve monetary policy. The jobs report is set to confirm the US labor market remains very tight despite high inflation and borrowing costs, with sectors as leisure and hospitality, local government and education which were severely affected during the pandemic, leading the job gains.  

The unemployment rate is seen edging lower to 3.6% from a seven-month high of 3.7% and remaining close to five-decade lows. 

WTI crude futures steadied near $72 per barrel. Gold held around $1,910 an ounce while the yield on the US 10-year Treasury note has surpassed the 4% threshold for the first time since March 2nd. 

All three major U.S. stock indexes were on track to end the week lower as investors braced for interest rates to head higher still and escalating tensions between Beijing and Washington added to concerns. 

The best strategy for a swing trader when markets experience a broad sell-off depends on a number of factors, including the trader’s individual risk tolerance, trading style, and the overall market conditions. It is important to stay calm and not panic when the market is experiencing a sell-off. Follow your trading plan and utilize stop-losses. This can help you defend gains and limit your losses if the market moves against you. 

Have a great day!