U.S. stock futures edged higher Friday as investors focused on the August nonfarm payrolls report, a key indicator for the Federal Reserve’s next interest rate decision. Expectations remain heavily tilted toward a rate cut later this month, while developments from OpenAI and potential U.S.-Mexico-Canada trade talks added to market attention.
Markets poised for jobs data
By early trading, Dow futures were largely flat, S&P 500 futures gained 0.2%, and Nasdaq 100 futures rose around 0.4%. U.S. equities advanced in the prior session, with the S&P 500 setting a fresh record closing high. Recent labor reports, showing slower private-sector hiring and a modest rise in unemployment claims, have strengthened investor bets on an interest rate reduction at the Fed’s September 16-17 meeting.
Economists forecast that the U.S. added roughly 75,000 jobs in August, slightly higher than the 73,000 recorded in July. A softer-than-expected reading would likely reinforce expectations for a 25-basis point cut, with CME FedWatch signaling nearly a 100% probability. Federal Reserve officials continue to balance their dual mandate of stable inflation and maximum employment, with recent comments suggesting labor support may be a current priority.
OpenAI to develop in-house AI chips with Broadcom
OpenAI is reportedly preparing to manufacture its own AI chip starting in 2026 in collaboration with Broadcom, according to the Financial Times. The move is aimed at meeting surging AI computing demands while reducing reliance on Nvidia. Broadcom CEO Hock Tan revealed a new customer had committed $10 billion in orders, identified as OpenAI by the FT. The chips will be for internal use, rather than commercial sale. Broadcom’s stock climbed more than 6% in after-hours trading following strong Q3 results and positive guidance.
USMCA renegotiation underway
The Wall Street Journal reported that the Trump administration plans to reopen negotiations on the U.S.-Mexico-Canada trade agreement. The Office of the U.S. Trade Representative will hold public hearings, aiming to complete initial renegotiation steps by October 4. While consultations with companies and unions will begin this week, the full process is expected to stretch over several months. Past tariffs imposed and partially rolled back by the administration add complexity to the talks.
Gold remains steady near highs
Gold prices held near recent peaks in early European trading as markets awaited the U.S. payroll report. Spot gold rose 0.1% to $3,547.80 per ounce, while December futures hovered around $3,607.82/oz. Broader metal markets also posted weekly gains, supported by expectations of a Fed rate cut. Lower rates reduce the opportunity cost of investing in non-yielding assets like precious metals relative to government bonds.
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