US stock index futures climbed Friday as Treasury yields retreated and oil prices softened ahead of the September jobs report. Dow, S&P 500, and Nasdaq 100 futures all advanced in premarket trading, while Nike shares slid after a steep revenue warning.
US stock index futures advanced on Friday as Treasury yields retreated on reduced odds of a rate increase this month, and softer oil prices steadied investor sentiment. Traders are awaiting the closely watched nonfarm payrolls report due at 8:30 a.m. ET.
Futures gain as yields pull back
At 06:46 a.m. ET, Dow E-minis were up 259 points, or 0.51%, and S&P 500 E-minis were up 37 points, or 0.48%. Nasdaq 100 E-minis gained 223.25 points, or 0.73%.
Chips and megacaps led the advance. Nvidia added nearly 1.2% in premarket trading, while Broadcom and Advanced Micro Devices rose about 1.3% each. Nike, meanwhile, fell 10.7% after forecasting a steep drop in annual revenue due to weakness in China. The company also announced job cuts and a reshuffle of its global business divisions.
Jobs data looms over Fed outlook
Economists expect US job growth to slow in September, with unemployment holding steady at 4.1% for a third straight month. Kathleen Brooks, research director at XTB, said the focus could shift to wage data, noting stronger signs of wage pressure would mean "this will be harder for the Fed to ignore."
The latest inflation report and pushback against a back-to-back rate hike in October from at least two top policymakers have led investors to bet on a likely hold by the Federal Reserve. Traders now see a 76% chance of Fed rates staying unchanged in October, up from around 29% a week ago, according to the CME Group's FedWatch Tool. Investors will also weigh this week's data pointing to robust economic activity and a slower-than-expected rise in prices, still above the central bank's 2% target.
Wall Street's main indexes finished higher Thursday after a rebound in Treasuries eased concerns over soaring yields, following a bond selloff that had pushed the 10-year yield to multi-decade highs earlier in the day. Still, the S&P 500 was set for a weekly loss of about 1%, pressured by rising yields that stoked worries about inflation and mounting government debt.
Source: Investing.com
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