SPDR Dow ETF Futures Slide 1.4% on -92K Payrolls, Oil Above $90
February nonfarm payrolls lost 92,000 jobs, dropping far below the 50,000 expected and revising January to -17,000, with the unemployment rate rising to 4.4% and a four-month average of -21,000. Pre-market Dow futures fell 1.37% while oil surged past $90 per barrel, pressuring SPDR Dow ETF.
1. February Employment Report
Nonfarm payrolls declined by 92,000 jobs in February, well below the 50,000 consensus and reversing a downwardly revised January figure to -17,000. The unemployment rate increased by 0.1 percentage point to 4.4%, yielding a four-month average of a 21,000-job contraction—the first negative trend since the Covid pandemic.
2. Sector Job Loss Breakdown
Healthcare shed 28,000 positions, while Information Systems and Transportation/Warehousing each lost 11,000 jobs and government employment fell by 10,000. Social Assistance added 9,000 jobs, but Transportation/Warehousing has lost 157,000 positions year-over-year, a 2.4% decline.
3. Wage Growth and Participation
Average hourly earnings rose 0.4% month-over-month and 3.8% year-over-year, slightly above expectations. The average workweek shortened to 33.8 hours, labor force participation dipped to 62.0%—the lowest since December 2021—and the U-6 unemployment measure reached 7.9%.
4. Market Reaction and Retail Sales
Pre-market futures for the Dow slipped 1.37% following the weak jobs data and a crude oil rally above $90 per barrel. January retail sales fell 0.2% versus a 0.4% expected drop, while ex-autos and gas sales were flat, rising 0.3% excluding both categories.