U.S. Stock Futures Climb on Soft Jobs Data Dimming Fed Hike Bets

U.S. stock futures posted modest gains on Sunday evening, building on Wall Street's upward momentum from Friday. The Nasdaq 100 futures rose 0.1% to 17,784.0 points, while Dow Jones futures climbed 0.3% to 31,148.0 points, and S&P 500 futures edged up 0.1% to 5,151.0 points by 20:06 ET.

The market's positive outlook was fueled by softer-than-expected jobs data, which reduced expectations for another Federal Reserve interest-rate hike this month. The Labor Department reported that U.S. employers added just 29,000 jobs in September, far below the anticipated 90,000 increase. The unemployment rate rose to 4.2% from 4.1%, and August's payroll growth was revised downward to 133,000 from 162,000.

Traders scaled back expectations for a Fed rate increase, with markets pricing in roughly an 80% probability that the central bank would leave rates unchanged this month, according to CME FedWatch. The weaker labor market supported rate-sensitive technology shares, with the Nasdaq 100 gaining 1.2% on Friday, while the S&P 500 and Dow Jones added 0.7% and 0.5%, respectively.

However, gains in U.S. equities were tempered by a renewed selloff in government bonds and persistent concerns about energy-driven inflation. Treasury yields initially fell after the jobs report but later reversed higher, as investors remained wary that elevated oil prices could keep inflation above the Fed's comfort zone. Oil prices, particularly Brent crude, have traded above $100 a barrel due to ongoing conflicts disrupting energy supplies.