September Payrolls Report Looms Large as US Markets Edge Higher
US stock futures rose modestly on Friday as investors awaited the September nonfarm payrolls report from the Bureau of Labor Statistics. The report, due out shortly, is expected to show job growth of 84,000 and an unemployment rate holding steady at 4.1%. Major indexes closed slightly higher in the previous session but remain on track for weekly losses.
The Federal Reserve continues to emphasize labor market stability while shifting focus towards persistent inflation pressures. Market expectations for an October interest rate hike have dropped significantly following recent remarks from Fed leadership, with a 72% probability of holding rates steady during its upcoming meeting based on futures trading.
Natixis CIB Americas chief economist Christopher Hodge expects payrolls to slow but still register solid gains. 'We expect payrolls to increase by 60k, which if realized, would bring the three-month moving average of gains to 81k,' he said.