Stock Market Predictions Point Towards Initial Gain for Wall Street
Thursday's Economic Announcements and Market Overview
Investors are bracing for a series of key economic announcements on Thursday, 7th August, 2025, as the U.S. labor market and consumer inflation figures take centre stage.
As of the early hours, the Dow Jones Industrial Average futures were up 98.00 points, and the S&P 500 futures were adding 57.50 points, suggesting a moderately positive opening for Wall Street. However, recent market sentiment has been affected by weak employment and tariff concerns.
The U.S. labor market has shown surprisingly weak job growth in 2025, with large downward revisions in recent months indicating scant employment gains. This has negatively impacted consumer sentiment and spending, causing a 3.5% decline in consumer discretionary stocks recently.
Consumer price inflation concerns are also elevated amid tariff increases set to come into effect on August 7, which could exert upward pressure on consumer prices, further impacting inflation readings and consumer behavior.
The Jobless Claims for the week will be issued at 8.30 am ET, with a consensus of 225K. The Personal Income and Outlays for June will be published at 8.30 am ET, with a consensus of up 0.2 percent. The Agriculture Department's Farm Prices for June will be issued at 3.00 pm ET, and the Energy Information Administration's Natural Gas report for the week will be released at 10.30 am ET.
The Fed Balance Sheet for the week is scheduled at 4.30 pm ET. Earnings reports and economic announcements, including weekly jobless claims and consumer price inflation, will be the focus on Thursday.
Meanwhile, Asian stocks ended mostly lower on Thursday, with the Shanghai Composite Index falling 1.2 percent to 3,573.21, and the Hang Seng Index tumbling 1.6 percent to 24,773.33. In contrast, Japanese markets rallied, with the Nikkei 225 Index jumping 1.0 percent to 41,069.82.
In the Asian trading session, gold prices surged above $3,300 per ounce, extending its bullish run. Oil prices were also up, and the dollar continued its bullish run. The broader Topix Index settled 0.8 percent higher at 2,943.07, while the S&P/ASX 200 Index slipped 0.2 percent to 8,742.80 in Australian markets.
The Nasdaq 100 futures were progressing 310.75 points, indicating a positive outlook for the tech-heavy index. However, the weak employment data and tariff announcements have increased recession fears and market volatility, leading to a bearish sentiment particularly in consumer discretionary sectors.
Investors will be closely monitoring the economic announcements for confirmation of continuing weak employment growth and elevated consumer price inflation pressure due to new tariffs taking effect on August 7, both key drivers for U.S. markets under current uncertainty.
[1] Source: Financial Times, Bloomberg, Reuters, and CNBC reports.
- Thursday's economic announcements, particularly those related to personal-finance indicators such as jobless claims and consumer price inflation, are pivotal for investors in the current uncertainbusiness environment, as they shed light on the state of the U.S. labor market and potential impact of tariffs on consumer prices.
- In the realm of education-and-self-development, understanding the implications of Thursday's economic announcements is essential for anyone interested in investing or finance, as they offer insights into the overall health of the economy and the subsequent effects on various sectors, including technology and consumer discretionary stocks.
- General-news outlets like Financial Times, Bloomberg, Reuters, and CNBC will provide comprehensive coverage of Thursday's economic announcements, offering valuable information for those interested in business, technology, and personal-finance, as well as the wider public eager to stay informed about current events that might influence global markets and economic trends.
