Nasdaq Futures Rise Ahead of Crucial August Jobs Report

Wall Street's rebound is facing its next major test as investors await the August jobs report. Nasdaq 100 futures rose about 135 points, or 0.4%, in early trading.

The Federal Reserve Governor Christopher Waller signaled support for holding rates steady this month if inflation continues to cool. This led to a decline in the implied chance of a September rate increase, with markets now pricing it at around 50%.

Payrolls are expected to rise by about 53,000 after a 23,000 decline in July, according to economists polled by MarketWatch. A weak print would reinforce concerns that hiring has lost momentum and make a September rate increase harder to justify.

Lululemon tumbled about 18% in premarket trading after cutting its full-year outlook for the second time this year, deepening concerns about weak sales in the Americas.