let's go out to Chicago to see how midweek trade is shaping up. Investors are weighing U.S. Iran war tensions as well as rate hike expectations for the central bank with the highly anticipated nonfarm payrolls figure coming out on Friday. So joining us live from the SIBO trading floor is FinTech TV correspondent Mark Payton. So take us through this morning's pre-market action Mark.
Good morning, Remy. Yeah, we're seeing a little more stability in the markets this morning as we get closer to the open, starting with the S&P 500. Futures are now hovering right around that flat line to slightly higher this morning after stocks started September with another down day yesterday. The VIX has also won the watch, especially today. The VIX finished yesterday at 16.34. up about 9.5% on the day. So we've seen volatility pick up just a little bit, but for the last week or so, it's hovering around 15 to 16. Small caps are also hovering close to the flat line. And with the 10-year treasury yield right around 4.8%, rates remain an important part of the story, especially for smaller companies that could be more sensitive to borrowing costs. And then take a look at oil. You just mentioned it. WTI is trading right around $89 a barrel this morning. That's actually down from earlier levels. But keep in mind, WTI jumped more than 5% yesterday and so above $90 a barrel as renewed U.S. around fighting race concerns about supply through the Strait of Hormuz. So even with oil pulling back a little this morning, it remains a major inflation story to keep an eye on.
And Mark, earlier this morning, we got key economic data in the form of the ADP Employment Report, and all of us are counting down to that jobs report for the latest month coming out on Friday morning. And it is befitting given the fact that we're about to head into the labor market holiday weekend. So Monday, the markets will be closed. But when it comes to employment, in particular private sector hiring, give us your insight when it comes to the latest ADP report.
Yeah, the headline here is that the hiring continues to look pretty soft. Private sector employers added just 38,000 jobs in August. That came in below expectations of about 48,000 and it is also below July's revised 46,000. So we're seeing another month of pretty modest private sector job growth. And when you drill down into the data, it's a mixed picture. Manufacturing lost 17,000 jobs and professional and business services lost 16,000. But on the other side, education and health services added 45,000 jobs. So for investors, this creates a really interesting dynamic for the Fed. You have a labor market that appears to be cooling, but at the same time, oil prices and treasury yields have been moving higher, keeping inflation concerns very much alive. And that puts even more attention on Friday's government jobs report. So right now, economists are looking for about 56,000 nonfarm payrolls in August, with the unemployment rate holding at 4.1%. That will give us a much bigger look at where the labor market stands and what it could mean for the Fed later this month.
Yeah, and indeed, a lot of anticipation ahead of Friday's nonfarm payrolls figures, as well as that jobs report. So thank you so much for weighing in, Mark. We'll talk to you during the noon hour.
Thank you.
