US Stocks Set to Rise Ahead of Key Jobs Report
The US stock market is set to rise on Friday morning, following a relatively quiet finish to trading on Thursday. The Dow Jones, S&P 500, and Nasdaq futures are all pointing to gains of between 0.5% and 0.7%, driven by expectations of the upcoming non-farm payrolls report.
The employment statistics, due out at 1330 BST, will be closely watched as they could influence the Federal Reserve's next policy move when it meets on October 27-28. The Fed has been considering raising interest rates in response to inflation concerns, but recent data suggests that expectations of a rate hike this month have dropped from over 70% to just 24%, according to Kathleen Brooks, research director at XTB.
The jobs report is seen as crucial in determining the near-term path for interest rates, with many economists believing it will be a referendum on whether the Fed should continue to raise rates. Meanwhile, bond yields have remained steady, with the 10-year yield ticking down by 0.6 basis points to 5.236%, and the 30-year yield holding at 5.620%.
Nike shares are set to fall in response to a weaker-than-expected revenue guidance for the year, attributed in part to difficulties in the Chinese market. The company also announced job cuts that will start next year, sending its shares down by as much as 9% in pre-market trading.