Nasdaq futures rise ahead of key labor report

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Nasdaq futures rise

Highlights

Stock futures showed mixed moves before jobs data.
Nasdaq 100 futures led gains with a 0.52% rise.
Markets await August payrolls and Fed signals.
Lower yields supported recent stock gains.

Dow Jones futures fell 0.11% to 53,685 points, while S&P 500 futures rose 0.07% to 7,760.50 points and Nasdaq 100 futures gained 0.52% to 29,677.50 points. The latest market moves followed a rally during regular trading on Sept. 3, when the Dow Jones gained more than 600 points, the S&P 500 climbed more than 1%, and the Nasdaq Composite advanced 1.4%, CNBC reported.

Investors focus on jobs data and Fed outlook

The main market focus remains the August nonfarm payrolls report, which could shape expectations for the Federal Reserve’s September meeting. Economists surveyed by Dow Jones expect the economy added 53,000 jobs last month, while the unemployment rate is expected to remain at 4.1%.

The report follows a weaker July reading, when payrolls declined by 23,000. A significant slowdown in hiring could strengthen expectations that the Fed will avoid another rate increase, while stronger data may reinforce the case for tighter policy.

The shift in rate expectations gained momentum after Fed Governor Christopher Waller indicated support for keeping interest rates unchanged if inflation continues to improve. Treasury yields moved lower following his remarks, helping lift equity valuations.

Markets weigh policy risks after weekly gains

U.S. equities are heading toward a positive week. The S&P 500 is on track for a 0.5% weekly gain, the Nasdaq is positioned for a 0.7% increase, and the Dow is expected to rise 0.2%.

Investors are balancing expectations for another possible Fed hike with signs that economic activity is moderating. The upcoming employment report and next week’s inflation data are likely to determine whether market expectations shift further.

International markets were mixed. South Korea’s Kospi gained 1.64% and Japan’s Nikkei 225 rose 1.26%, while Hong Kong’s Hang Seng advanced 1.82%. European stocks traded slightly higher overall, with regional indexes moving in different directions.

Employment data becomes next market catalyst

The jobs report arrives at a sensitive point for financial markets, with investors looking for confirmation that inflation pressures are easing without a sharp deterioration in economic growth.

Recent gains in U.S. equities have been supported by expectations of a less aggressive Federal Reserve path. However, the labor market data will provide a key test of whether those expectations are justified.

As we previously reported, Norway wealth fund could cut U.S. Treasury holdings by $75 billion.

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