Nasdaq and S&P 500 futures edged higher on Friday as investors awaited the latest US jobs report, a closely watched test of whether the recent recovery in equities can continue.
At 7.05am Eastern time, S&P 500 futures were up 0.05%, while Nasdaq 100 futures gained 0.44%. Dow futures, by contrast, slipped 0.11%.
The figures, due from the US Bureau of Labor Statistics at 8.30am, are expected to show that employers added 56,000 jobs in August after payrolls fell by 23,000 in July. Economists expect the unemployment rate to remain at 4.1%, although a rise to 4.2% is considered possible.
July’s report had unsettled markets after it showed an unexpected decline in employment. Job gains for the previous two months were also revised sharply lower, adding to concerns that the US labour market was losing momentum.
Investors have been weighing the employment data against the outlook for interest rates. Federal Reserve governor Christopher Waller said on Thursday that he could support leaving rates unchanged if incoming figures continued to show signs of easing inflation.
His comments reduced market expectations of a quarter-point rate rise at the Federal Reserve’s September meeting. The probability implied by futures markets fell to about 50%, from 63% before Waller spoke.
“Waller’s comments matter for several reasons,” said Felix Vezina-Poirier, chief strategist at BCA Research. He noted that the remarks were the last major signal from a Federal Reserve official before the pre-meeting communications blackout.
Markets were also reacting to company-specific news. Lululemon shares fell 20.1% in pre-market trading after the clothing retailer cut its full-year profit and revenue forecasts, while Adobe declined 2.8% after announcing that chief executive Shantanu Narayen would hand over the role to company insider Anil Chakravarthy.
The jobs figures will set the tone for the final trading session before the Labor Day weekend, with investors also preparing for fresh US inflation data due next week.
