Pre-Market | U.S. Indices Drop as Labor Market Strength Delays Fed Rate Cuts

11 Jul., U.S. indices saw a pre-market decline with DOW FUTURES down 0.56%, NASDAQ FUTURES down 0.42%, and S&P FUTURES down 0.50%. This drop comes as U.S. labor market data showed unexpectedly stronger conditions, with weekly initial jobless claims falling to 227,000, below forecasts, and lower continuing claims, reflecting ongoing labor market strength. This resilience may delay Fed rate cuts, potentially acting as a market-negative factor.

Medtronic shares rose 3.21% in pre-market trading, driven by CMS's proposed favorable coverage for renal denervation therapy. MicroStrategy saw a 2.93% increase in pre-market trading, as the company expanded its Bitcoin focus by launching a $4.2 billion STRD offering to fuel Bitcoin gains. HSBC Holdings dropped 1.59% in pre-market trading, following the announcement of US tariffs on April 2. Eaton shares fell 1.38% in pre-market trading, amid concerns over AI supply chain impact from slower data center expansion.

In pre-market trading, Signing Day surged by 149.59% as the company refreshed its marketing strategies and aggressively pushed into the market. Above Food also saw a significant rise, up 115.48%. Capricor, however, dropped 45.61% after the FDA rejected its Duchenne drug application due to insufficient evidence of effectiveness. Q32 Bio fell 32.23% following its exclusion from the S&P Global BMI Index and announced restructuring to focus on alopecia areata treatment.

Tesla will enter the Indian market by opening an experience center on July 15. U.S. initial jobless claims unexpectedly decreased to 227,000 for the week ending July 5, reflecting labor market resilience; treasury yields were broadly flat, with the 2-year yield at 3.86%, 10-year slightly higher at 4.35%, and 30-year lower at 4.865%. Separately, the U.S. Treasury Secretary criticized Elon Musk's initiative to establish a new political party, remarking "He might win votes on Mars," amid concerns over corporate focus.