US Stock Futures Remain Steady Ahead of Important Payrolls Report

U.S. stock futures remained mostly stable on Friday as investors cautiously awaited the release of an important jobs report that may influence the trajectory of the Federal Reserve’s rate reductions this year.

As of 05:55 ET (09:55 GMT), the Dow Futures contract was down 10 points, or 0.1%, while S&P 500 Futures saw an increase of 8 points, or 0.1%, and Nasdaq 100 Futures rose by 48 points, or 0.2%.

On Thursday, the major indices closed with losses, with the Dow Jones Industrial Average dropping 185 points, or 0.4%. The S&P 500 fell by 0.2%, and the Nasdaq Composite edged into negative territory. All three major indices were expected to break a three-week winning streak.

The ongoing tensions in the Middle East have affected investor sentiment throughout the week, particularly as Israel has vowed retaliation following Iran’s recent attacks.

Focus on Nonfarm Payrolls

The primary focus for Friday is the anticipated release of the nonfarm payrolls report, which could provide insights into the magnitude of upcoming rate cuts by the Federal Reserve. The Labor Department is scheduled to unveil the October nonfarm payroll data just before the market opens, with economists projecting that the U.S. economy added 147,000 jobs, while the unemployment rate is expected to hold steady at 4.2%.

If the data comes in weaker than expected, it could reignite concerns about a potential recession. However, earlier data this week, including figures on job openings, private payrolls, and weekly initial jobless claims, have indicated a robust labor market, tempering expectations of another significant rate hike following last month’s increase of 50 basis points.

EU Implements Tariffs on Chinese EVs

In corporate news, the electric vehicle sector is likely to be under scrutiny after the European Union voted to implement definitive tariffs on battery electric vehicles manufactured in China. This decision follows several months of discussions and initial announcements regarding higher tariffs, which were first proposed in June.

Additionally, a strike by U.S. dockworkers appears to be nearing its conclusion, as their union has reached an agreement with the group representing major ocean shipping companies, which is expected to result in a wage increase of about 62% over six years.

Oil Prices Surge

Oil prices experienced a rise on Friday, on track for their most significant weekly gain in over a year amidst escalating tensions in the Middle East. By 05:55 ET, Brent crude was up 0.9% at $78.30 per barrel, while U.S. crude futures (WTI) rose by 1% to $74.42 per barrel. Brent futures are poised for a weekly gain of approximately 9%, marking the largest increase since February 2023, while U.S. crude futures are also heading for a significant 9% rise, the steepest since March of the previous year.