Market professionals are closely following the difference between long-term Treasury yields and shorter-term yields, with the former typically higher. The 2-year Treasury yield remained above 10 years. This so-called investment, especially if maintained, is often interpreted as a warning sign that the economy may be weakening and a recession could be on the horizon.
On Wednesday, the latest minutes of the Federal Reserve meeting showed the central bank was leaning toward another 75 basis point rate hike this month as it focuses on lowering inflation.
As for the data, the June employment report will be delivered later Friday at 8:30 am ET. It is expected to show another month of strong hiring, avoiding any signs of an impending economic slowdown.
Economists predict that the U.S. economy added 250,000 jobs last month and that the unemployment rate will remain flat at 3.6%, according to Dow Jones.
– CNBC’s Elliot Smith, Carmen Reinicke and Jeff Cox contributed to this report.