A take a look at the day ahead in U.S. and international markets from Mike Dolan Another forecast miss from a U.S. megacap combines with care ahead of January's employment report to keep a lid on stocks into Friday's open - with resilient long-dated Treasuries squashing the yield curve to its flattest for the year.

Much like Microsoft and Alphabet over the previous number of weeks, Amazon dissatisfied Wall Street late Thursday as issue about cloud computing doused profits and revenue forecasts and sent its stock down 4% over night.

The current underwhelming outlook from the "Magnificent 7" leading U.S. tech firms check an otherwise upbeat S&P 500, with questions about heavy invests in artificial intelligence ignited again by the development of China's inexpensive DeepSeek model.

The DeepSeek buzz, by contrast, continues to fire up Chinese stocks. They added another 1%-plus earlier on Friday despite ongoing concerns about an installing Sino-U.S. trade war and Monday's deadline for Beijing's vindictive tariffs.

But the day's macro occasions will likely take precedence, with the release of the January U.S. employment report and long-lasting modifications of past task creation.

Job growth likely slowed to 170,000 in January from just over quarter of million the previous month, partially restrained by wild fires in California and cold weather throughout much of the country.

Those distortions add a more complication to the readout, which will include annual benchmark modifications, brand-new population weights and updates to the seasonal modifications.

The week's sweep of other labor market reports, however, do point to some cooling of conditions - with job openings falling, layoffs rising and weekly unemployed claims ticking greater.

With the Federal Reserve currently trying to parse the impact of President Donald Trump's new financial policies, payroll distortions simply cloud the image even further.

And as Fed authorities insist they can wait and see for a bit, Fed futures remain trained on 2 more rates of interest cuts this year - resuming about midyear.

The Treasury market is more encouraged though - sustaining the early week's sharp drop in 10-year yields into today's tasks report and seeing the 2-to-10 year yield curve compress to the flattest it's remained in 6 weeks.

Helping the long end this week has actually been assuring signals from the Treasury's quarterly refunding report that a "terming out" of financial obligation auctions to longer maturities is not yet in the works, as lots of had actually feared.

Treasury Secretary Scott Bessent has likewise firmly insisted the new federal government's focus would be on getting long-term rates down rather than pushing the Fed to reduce prematurely.

Reuters analysis shows Trump has positioned holds on tens of billions of dollars in congressionally-approved costs for tasks throughout the U.S. that vary from Iowa soybean farmers embracing greener to a Virginia railway growth.

Bessent also doubled down on his view the administration wants to retain a "strong dollar" policy. But he colored that with a sideswipe. "What we wear ´ t want is other nations to damage their currencies, to control their trade."

But with the Fed on hold, main banks all over the world continued relieving rate of interest apace this week - partly on issues a trade tariff war will damage their economies.

With a sharp cut in its UK growth projection, the Bank of England cut its policy rate by a quarter point on Thursday - with two of its policymakers voting for a larger half point decrease. Sterling weakened at first, but has actually steadied considering that.

Mexico's main bank likewise cut its interest rate by 50 basis points on Thursday - saying it could cut by a comparable magnitude in the future as inflation cools and after the economy contracted somewhat late last year.

The European Central Bank, meantime, is anticipated to release its upgraded quote of what it sees as a "neutral" interest rate later on Friday.

That is very important as it notifies the ECB argument about whether it requires to cut rates below what thinks about neutral to restore the flagging euro zone economy. It's currently seen around 2% - 75bps below the standing policy rate.

In thrall to the payrolls release, the dollar index was constant on Friday. Dollar/yen briefly notched a brand-new low for the year, however, as Bank of Japan tightening up speculation simmers.

In Europe, stocks stalled near record highs as the heavy incomes season there unfolded.

Banks there have actually a been a standout winner today and again on Friday. Danske Bank, Denmark's greatest lending institution, wiki.whenparked.com was up 7.1% after it posted record yearly earnings and release a new share buyback programme.

Key developments that must offer more direction to U.S. markets in the future Friday: * U.S. January work report, forum.pinoo.com.tr University of Michigan February consumer survey, December consumer credit