Investors Remain Cautious Ahead of US Labor Market Data

At the same time, precious metals are moving higher, capitalizing on weaker USD and risk-on sentiment. Yesterday, copper futures rallied 5.30%, printing the largest daily gain since May 2013.

Focus on jobs market

Later today, the Bureau of Labor Statistics will issue its nonfarm payroll data for May. According to projections, 310,000 jobs will be added in May, compared to 428,000 in March and April. In addition, the unemployment rate is seen staying at 3.6%, while wage growth is projected to decline slightly.

The US economy had gained at least 400,000 jobs per month over the past year, bringing employment to only 1.2 million jobs below levels seen before the epidemic struck in March 2020.

"We've enjoyed 12 consecutive months of payroll growth north of 400,000, but that streak is close to an end," Bankrate Chief Financial Analyst Greg McBride said in a note. "Job growth will continue but at a more modest pace in the months ahead as the Federal Reserve works to slow the economy and corral inflation."

Last but not least, the ISM services survey will be released, predicted to decrease marginally in June, down from 57.1 to 56.0.

On Thursday, stocks rose strongly, despite remarks from Federal Reserve Vice-Chair Lael Brainard, who suggested the central bank would be unlikely to suspend its current rate-hiking cycle in the face of high inflation. Additionally, Cleveland Loretta Mester noted that inflation has not yet peaked, and it is too early to talk about a possible stop in the tightening course.