US Futures Pause Ahead of Crucial Payrolls Report
US stock index futures hovered near flat on Friday morning as investors paused ahead of a crucial nonfarm payrolls report that will clarify the Federal Reserve's interest rate path. The latest update comes after a volatile week for global markets, which saw major indexes stage a sharp rally following dovish signals from key Fed leadership.
On Thursday, Fed Governor Christopher Waller signaled in public remarks that recent macroeconomic indicators point to encouraging signs of disinflation. He noted that if upcoming data confirms this trend, he would favor keeping interest rates unchanged at the central bank's September 15-16 policy meeting.
The comments prompted traders to rapidly re-evaluate the interest rate outlook, with money markets paring back expectations of a 25-basis-point Fed rate hike this month to 50.4%, down from roughly 60.1% a day earlier and nearly 68% earlier in the week.