U.S. stock index futures rose on Thursday evening as increasing signs of a cooling labor market fueled bets that the Federal Reserve will cut interest rates this month, boosting sentiment.
Focus was now on upcoming nonfarm payrolls data, due on Friday morning, for more definitive cues on employment. Futures edged higher after a largely positive session on Wall Street, where the S&P 500 hit a fresh high.
S&P 500 Futures rose 0.1% to 6,516.50 points, while Nasdaq 100 Futures rose 0.2% to 23,711.25 points by 19:22 ET (23:22 GMT). Dow Jones Futures were flat at 45,693.0 points.
Some positive earnings also aided sentiment. Server chips maker Broadcom Inc (NASDAQ:AVGO) rose 4% in aftermarket trade on strong quarterly earnings. Samsara Inc (NYSE:IOT) added 8% on strong earnings, while DocuSign Inc (NASDAQ:DOCU) rose 6% on similar news.
Nonfarm payrolls awaited for more rate cut cues
Nonfarm payrolls data for August is due at 08:30 ET (12:30 GMT) on Friday, and is expected to show growth in the number of people employed remaining weak in August after slowing sharply in the prior month.
The print comes at the heels of several other weak prints on the labor market this week, after JOLTS job openings data underwhelmed and initial jobless claims rose more than expected.
The data was also accompanied by a host of Fed members stating that a cooling labor market does open the door to more interest rate cuts by the central bank. Fed Chair Jerome Powell had expressed a similar view in August.
This saw markets sharply ramp up bets that the Fed will cut rates at its September meeting. Fed fund futures showed markets pricing in a 96.4% chance for a 25 basis point cut during the Fed’s Sept 16-17 meeting, according to CME Fedwatch.
Lower rates stand to boost economic growth while also releasing more liquidity into markets.
Wall St rises on rate cut bets; S&P 500 hits record high
Wall Street indexes advanced on Thursday, recouping a bulk of losses from earlier in the week as the prospect of lower U.S. rates drove increased buying in risk-driven assets.
The S&P 500 rose 0.8% to a record-high close of 6,502.08 points on Thursday. The NASDAQ Composite rose 1% to 21,707.69 points, while the Dow Jones Industrial Average rose 0.8% to 45.621.29 points.
Wall Street had marked a sluggish start to September amid heightened uncertainty over a legal challenge to President Donald Trump’s trade tariffs, as well as attempts by the president to fire a Fed governor.
Source :
https://www.investing.com/news/stock-market-news/us-stock-futures-upbeat-as-rate-cut-bets-grow-ahead-of-payrolls-test-4225849
