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Futures Add to Losses After Labor Market Loses 33,000 Jobs In September

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Stock futures are adding to earlier losses after the impact from Hurricanes Harvey and Irma resulted in the U.S. economy losing 33,000 jobs in September, well below expectations for a gain of 100,000 in nonfarm jobs, and the first time the economy lost jobs in a single month in seven years.

The other components of the labor market report was bullish, however, as the jobless rate fell to 4.2% from 4.4%, and average hourly earnings increased by 0.5%, beating expectations for a more modest gain of 0.3%.

Leading into the pivotal payroll report, Wall Street was trading defensively following Thursday’s record-setting run. Concerns about President Donald Trump’s tax bill passing through Congress as well as pressure on European markets from political tensions in Spain weighed on U.S. futures as investors braced for the September jobs report.

The more bullish components of the labor market report–specifically an unexpected drop in the jobless rate and robust gain in earnings–drove the dollar and Treasury yields sharply higher on expectations for the Federal Reserve to raise rates once more this year. Gold lost $5.50 in value while oil is trading sharply lower with West Texas intermediate is trading below $50 per barrel on the futures market.