New York, Sep 4: US stock futures remained largely steady in early Friday trading as investors took a cautious approach ahead of the August jobs report, which could provide important clues about the Federal Reserve’s next interest-rate move.
Dow Jones Industrial Average futures were flat, while S&P 500 futures edged up 0.05% and Nasdaq-100 futures gained 0.17%.
The cautious mood came after a strong rally on Wall Street on Thursday. The Dow surged more than 600 points, or 1.2%, marking its best performance since August 4. The S&P 500 rose more than 1%, while the Nasdaq Composite advanced 1.4%.
Asian markets also opened mostly higher on Friday, supported by improved global sentiment. South Korea’s Kospi gained 1.13%, Japan’s Nikkei 225 rose 0.74%, Hong Kong’s Hang Seng climbed 1.9% and China’s CSI 300 advanced 0.89%. Australia’s S&P/ASX 200 was little changed.
Investors are now waiting for the August employment figures, which are expected to offer a clearer picture of the health of the US labour market. Economists expect the US economy to have added around 53,000 non-farm jobs in August, while the unemployment rate is projected at 4.1%. The figures follow a decline of 23,000 jobs in July.
The jobs data could have a major influence on market expectations around the Federal Reserve’s policy outlook. A weaker labour market could strengthen expectations for rate cuts, while stronger-than-expected employment could encourage policymakers to remain cautious.
Investor sentiment was also supported by a decline in US Treasury yields after Federal Reserve Governor Christopher Waller indicated that he could support keeping interest rates unchanged at the current 3.5%-3.75% range at the September 15-16 policy meeting.
Markets will also be watching next week’s inflation figures, including the Consumer Price Index and Producer Price Index, for additional clues about the direction of interest rates.
Despite Friday’s cautious start, US stocks remain on track to finish the week in positive territory. The S&P 500 is heading for a weekly gain of around 0.5%, while the Nasdaq is poised to rise 0.7% and the Dow is set for a 0.2% increase.
With employment and inflation data taking centre stage, investors are likely to remain alert to every major economic signal as they assess the outlook for US interest rates and global markets.