US Futures Slide Amid Weak Jobs Data and Fed Uncertainty

US stock futures declined on Monday as investors digested the weaker-than-expected September jobs report, which reduced the likelihood of a Federal Reserve rate hike in October but left long-term borrowing costs near historically high levels. Dow, S&P 500, and Nasdaq 100 futures each fell about 0.2%, while the 10-year Treasury yield hovered near 5.26%. Despite the September payrolls report, showing just 29,000 new jobs and an unemployment rate rise to 4.2%, traders still see a 69% chance of a December rate increase.

Key economic data releases, including the final S&P Global services PMI and ISM services report, could influence market sentiment. A strong services report might counter the weak payrolls data by signaling persistent demand. However, Swissquote strategist Ipek Ozkardeskaya warned that bond market weakness could limit further gains in equities.

France’s fiscal stress continues to weigh on markets, with the euro falling to a 17-month low near $1.116 and the spread between French and German 10-year yields widening to around 150 basis points. The CAC 40 dropped about 0.8%, raising concerns for US investors about a stronger dollar and tighter global financial conditions.

Oil prices eased slightly, with Brent trading near $102.30 and WTI around $90.60, but remain high enough to pose inflation risks if supply disruptions occur. In corporate news, PTC surged about 35% after Schneider Electric agreed to acquire the industrial-software company for $205 per share, while Intel fell more than 3% amid reports of TSMC discussions with Terafab about managing Texas semiconductor plants.