Nasdaq 100 and S&P 500 futures rose on Friday ahead of a key August jobs report. The move follows Fed Governor Christopher Waller's comments a day earlier, which narrowed traders' rate-hike expectations and lifted equities out of a subdued start to September.
Nasdaq 100 E-minis rose 124.25 points, or 0.42%, and S&P 500 E-minis added 4.75 points, or 0.06%, at 4:24 a.m. ET on Friday. Dow E-minis slipped 40 points, or 0.07%, over the same span.
Rate-hike bets narrow after Waller remarks
Fed Governor Christopher Waller tempered rate hike bets a day earlier. As a result, traders now price a nearly 50% chance of a rate increase, down from 63% before his comments, according to the CME FedWatch tool.
Meanwhile, Fed Chair Kevin Warsh's focus on inflation has prompted some analysts to question whether labor-market trends could still sway the rate outlook. Still, the jobs report is expected to set the tone for the week's final session.
Equities recovered their poise after Waller said he would support holding rates steady if data shows inflation pressures abating. According to BCA Research chief strategist Felix Vezina-Poirier: "This is the last major Fedspeak event before the September meeting blackout", leaving markets without further guidance until the decision.
Payrolls expected to rebound after a weak July
Job growth is expected to have rebounded in August. Nonfarm payrolls likely increased by 56,000 jobs after declining 23,000 in July, according to a Reuters survey of economists.
The last nonfarm payrolls print showed the economy had unexpectedly shed jobs in July, and previously reported job gains for the prior two months were revised sharply lower.
Earnings moves and September's seasonal weakness
Lululemon Athletica fell 17.67% in premarket trading after it slashed its full-year profit and revenue forecasts. Adobe fell 3.18% after it said longtime CEO Shantanu Narayen will hand over the reins to insider Anil Chakravarthy.
As investors head into the Labor Day weekend, debate about September's seasonal weakness persists. Historically, September is the weakest month for stocks, but most of the weakness comes in the second half of the month, with returns averaging worse than 1%, according to Melissa Brown, global head of investment decision research at SimCorp.
Investors will also get the latest inflation readings when the Labor Department releases CPI and PPI data next week.
Source: Investing.com
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