US futures lower as Fed rate cut hopes are dashed by strong jobs data

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Traders work on the floor of the New York Stock Exchange as Fed Chairman Jerome Powell holds a news conference on December 19, 2018.

Spencer Platt | Getty Images

U.S. stock futures are trading lower Monday morning as strong jobs data dampened expectations that the Federal Reserve will cut interest rates anytime soon.

As of 06:35 a.m. ET, Dow futures fell 80 points, indicating a drop of 115 points at the open. S&P 500 and Nasdaq futures were also in negative territory.

Market participants were reacting to a solid jobs report from Friday. The U.S. economy added 224,000 jobs in June, official payrolls data showed, way above an expected increase of 165,000.

Traders had been betting heavily on the prospect of a Fed rate cut at the central bank’s next policy meeting, amid fears of a slowdown in global economic growth. At its last meeting, the Fed said it would “act as appropriate” to maintain the current U.S. economic expansion, which is the longest in history.

In terms of data, consumer credit figures are due at 3 p.m. ET.