U.S. equity futures were little changed early Thursday, suggesting a cautious open as investors hold back ahead of the Labor Department’s closely watched employment report due Friday.
The August jobs report is expected to show payroll growth of 75,000, just above July’s gain of 73,000. The outcome could be pivotal for the Federal Reserve’s next policy move, with markets already pricing in a 97.6% chance of a quarter-point rate cut later this month, according to CME Group’s FedWatch Tool.
Fresh indicators released Thursday added to the mixed picture. Payroll provider ADP reported private-sector job creation of 54,000 in August, falling short of economists’ forecast of 65,000 and well below July’s revised 106,000. Separately, the Labor Department said new filings for unemployment benefits climbed more than expected in the week ending August 30.
On Wednesday, stocks staged a late-session comeback, leaving the Nasdaq and S&P 500 firmly higher while the Dow posted a modest decline. The Nasdaq rallied 218.10 points, or 1.0%, to finish at 21,497.73, and the S&P 500 added 32.72 points, or 0.5%, to 6,448.26. The Dow slipped 24.58 points, or 0.1%, to 45,271.23.
Technology names were the standout, led by Alphabet’s 9.1% surge. The Google (NASDAQ:GOOG) parent jumped after a federal judge ruled the company would not be forced to spin off its Chrome browser or Android operating system in a high-profile antitrust case. Judge Amit Mehta said regulators “overreached” with their demand for divestitures. Apple (NASDAQ:AAPL) shares also advanced 3.8% on the ruling, which allows Google Search to remain preinstalled on iPhones.
Markets also found support from government data showing U.S. job openings fell in July to their lowest level in ten months — a sign of cooling labor demand that strengthens the case for Fed easing.
Sector moves were uneven. Gold miners gained as bullion hit another all-time high, pushing the NYSE Arca Gold Bugs Index up 1.8%. Energy names, however, lagged, with falling crude prices sending the Philadelphia Oil Service Index down 2.7% and the NYSE Arca Oil Index lower by 2.6%.
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