Futures tracking the technology‑heavy Nasdaq 100 and the benchmark S&P 500 indexes moved higher on Friday, reflecting optimism ahead of the Labor Department’s jobs report. The market reaction follows comments from Federal Reserve Governor Christopher Waller, who signaled a willingness to keep rates steady if inflation eases.
Fed guidance eases rate‑hike odds
Waller’s remarks reduced the market’s perceived probability of a rate increase from 63% to roughly 50%, according to the CME FedWatch tool. The governor’s stance is especially significant because it comes just before the Federal Reserve’s September policy‑making blackout, leaving investors without further guidance until the next meeting.
“Waller’s comments matter for several reasons. This is the last major Fedspeak event before the September meeting blackout, leaving markets without further guidance until the decision,” said Felix Vezina‑Poirier, chief strategist at BCA Research. “Waller has also often been ahead of the curve in both hiking and cutting cycles, giving his guidance added weight.”
Jobs data expected to show rebound
Economists surveyed by Reuters anticipate that non‑farm payrolls increased by about 56,000 jobs in August, a rebound after a loss of 23,000 jobs in July. The prior two months’ job gains were also revised sharply lower, underscoring the volatility of the labor market.
Investors will also be watching the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) releases, which are slated for next week. Those inflation readings, together with the payroll numbers, will shape expectations for the Fed’s next policy decision.
Market moves in early trade
At 4:24 a.m. ET, Dow E‑minis slipped 40 points (‑0.07%). The S&P 500 E‑minis rose 4.75 points (+0.06%) and Nasdaq 100 E‑minis gained 124.25 points (+0.42%).
Company‑specific news also influenced early trading. Lululemon Athletica fell 17.67% in pre‑market trading after it cut its full‑year profit and revenue forecasts. Adobe slipped 3.18% after announcing that longtime CEO Shantanu Narayen will hand the reins to insider Anil Chakravarthy.
Seasonal September weakness still a concern
Analysts continue to debate whether September’s historically weak performance will affect the market’s trajectory. Historically, the second half of September delivers the most negative returns, averaging a decline of just over 1%, according to Melissa Brown, global head of investment decision research at SimCorp.
Despite the seasonal headwinds, the recent rally suggests that investors remain confident that the Fed’s measured approach will keep inflation in check while allowing the economy to keep adding jobs.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
