Wall Street in wait-and-see mode ahead of jobs report
Just over an hour after opening, the Dow Jones index was down 0.6% at 41,926.6 points, while the Nasdaq Composite was down a more moderate 0.2% at 17,893.1 points.
Caution is the order of the day on the eve of the job creation statistics, given that a better-than-expected figure could prompt the Federal Reserve to slow down its rate cuts, expected to number two this year.
On the contrary, poor figures could prompt the US central bank to act more than it has so far communicated in its projections.
The market is expecting 150,000 new jobs to be created after the 142,000 announced for August, a degree of stability suggested by the latest mixed data on the labor market.
Published this morning, new weekly jobless claims rose by 6,000 last week to 225.000, which tends to confirm the scenario of an easing labor market.
The Fed's accommodating stance and falling inflation have enabled the Dow Jones to rebound by more than 8% since its low point on August 5, but the upward movement has run out of steam in the last two weeks, notably against the backdrop of geopolitical tensions.
After several years of inflation figures guiding the market, indicators relating to economic activity are now being followed more closely.
Published at the start of the session, the index calculated by the ISM purchasing managers' association showed accelerating growth in the services sector.
This indicator may seem contradictory to the prevailing view that the current economic slowdown warrants a rate cut.
According to CME Group's FedWatch barometer, traders place the probability of a 25bp rate cut next month at almost 66%, compared with 34% for a 50bp easing.
Reflecting investor caution, the vast majority of S&P sector indices - namely eight out of 11 - are trending downwards.
The energy sector, up 1.1%, was the best performer in the wake of oil prices, which gained almost 4% amid fears of a supply shortage due to tensions in the Middle East.
Israel's bombardment of a Russian base in Syria has added fuel to the fire, raising the risk of an extension of the conflict that Washington is seeking to avoid.
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