Let’s cut right to the chase — overnight, Wall Street’s big three indices all finished lower, stoked by market fears another rate hike is on the way.

Although those fears have been hovering around all week, investors are jittery after US labour market data showed there was only a moderate increase to the number of Americans filing for unemployment benefits, all the while private payrolls rose.

That points to a labour market that remains on steady footing, despite the growing risks of a recession in the US.

Not only that, but the report suggested that those workers who were recently laid off aren’t remaining unemployed for long — they’re finding new work in a shorter time frame. The data also showed more people are quitting their jobs, which is a telltale sign of confidence in the labour market.

The upshot? It makes it all the more likely the Federal Reserve will lift interest rates at its meeting this month, after pressing the pause button in June.

But the data doesn’t stop there — the full US employment report drops tonight.

Back home, the ASX is looking unlikely to recoup its losses from trading yesterday. Futures are down, and based on Wall Street’s drops from overnight, things aren’t looking too rosy for the local market.

Grab a coffee, settle in, and let’s see how the trading day unfolds.

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