Wall Street futures moved higher on Friday as Treasury yields eased and oil prices slipped, setting a more optimistic tone ahead of the crucial September jobs report. The market rally was led by technology megacaps, with Nvidia adding nearly 0.9% and both Broadcom and Advanced Micro Devices rising about 1% each. Alphabet and Tesla also posted gains close to 1%.
Yield decline and rate‑hop expectations
Investors pointed to a drop in the 2‑year Treasury note yield, which hovered near the more‑than‑one‑week low it hit on Thursday. The decline reflects reduced expectations of an additional Federal Reserve rate hike this month. The CME Group’s FedWatch Tool now shows a 76% probability that the Fed will hold rates steady in October, up sharply from roughly 29% a week earlier.
Oil price movement
Brent crude fell below the $100‑a‑barrel mark after reports that the European Union discussed releasing additional diesel and crude stockpiles. No new developments were reported on the ongoing Middle East conflict, which helped keep oil prices from climbing further.
Corporate reactions
Among the notable equity moves, Moderna rose 2.3% after Nasdaq announced the vaccine maker will replace Warner Bros. Discovery in the Nasdaq‑100 index starting October 9. Bitcoin gained 2%, while cryptocurrency exchange Coinbase and blockchain‑analytics firm Strategy each climbed nearly 3%.
Jobs data on the horizon
All eyes are on the September non‑farm payrolls report scheduled for 8:30 a.m. ET. Economists expect job growth to slow and unemployment to hold steady at 4.1% for a third consecutive month. The data will be weighed alongside earlier indicators that suggested robust economic activity but a slower‑than‑expected rise in prices, still above the Federal Reserve’s 2% target.
Market outlook
Despite the day’s gains, analysts caution that Wall Street’s major indexes could close the week lower, with the S&P 500 projected to finish down about 1%. Earlier in the week, Treasury yields had surged to two‑decade highs, driven by inflation concerns and mounting debt pressures across developed economies.
Upcoming economic releases
Friday will also bring August factory‑orders data and remarks from Dallas Fed President Lorie Logan, offering further insight into the health of the manufacturing sector and the Fed’s policy stance.
Overall, the combination of easing yields, softer oil prices, and a market that is pricing in a likely Fed pause has created a more favorable risk‑on environment for investors as they await the employment numbers that will shape the next round of monetary‑policy decisions.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
