US stock futures showed modest gains on Friday morning as market participants anticipated the release of the crucial August jobs report. This report is expected to provide further indications regarding the likelihood of the Federal Reserve implementing interest-rate hikes. Futures contracts tied to the S&P 500 Index saw a 0.1% increase, while Nasdaq 100 futures advanced by 0.5% as of 7:15 a.m. in New York.
Throughout the week, the S&P 500 demonstrated a 0.5% gain, whereas the Nasdaq 100 recorded a more modest rise of 0.2%. US markets are scheduled to be closed on Monday in observance of Labor Day.
Separately, the US labor market demonstrated stronger than anticipated momentum in August, with nonfarm payrolls increasing by 162,000, exceeding all estimates in a Bloomberg survey. This robust job growth, coupled with the unemployment rate holding steady at 4.1%, suggested to some analysts that the Federal Reserve might be inclined to raise interest rates later in the month. Short-term interest-rate futures indicated a roughly 65% chance of a rate hike at the Fed's September 15-16 meeting, up from about 55% prior to the jobs report. However, analysts also noted that the ultimate decision would likely hinge on upcoming consumer inflation data.
Following the strong jobs report, Treasury yields rose, with the yield on benchmark US 10-year notes increasing by 1.21 basis points to 4.774%. Two-year yields also hit their highest level since January 2025. In the stock market, the Dow Jones Industrial Average fell by 0.19% to 53,587.65, the S&P 500 eased by 0.08% to 7,741.65, while the Nasdaq Composite saw a slight gain of 0.06% to 26,601.08. Oil prices, specifically US crude, decreased by 1.6% to $89.87 a barrel, and Brent crude lost 1.3% to $94.26 per barrel.
