Stock futures showed minimal movement early Friday as market participants awaited the pivotal September jobs report. S&P 500 futures were up 0.26%, Dow Jones Industrial Average futures gained 125 points (0.24%), and Nasdaq-100 futures advanced 0.42%.
In the preceding regular trading session, the Dow, Nasdaq Composite, and S&P 500 all concluded with marginal gains, with the S&P 500 posting a 0.2% advance to kick off October. However, all three major indices are on track for weekly losses, with the Dow down 1.7% for the week.
Asian markets closed mixed on Friday. Japan's Nikkei 225 fell 0.94%, while South Korea's Kospi added 0.46%. Australia's S&P/ASX 200 traded 0.79% higher. Hong Kong's Hang Seng index saw a 2.8% decline in its final trading hour. Mainland Chinese markets remained closed for a holiday.
Treasury yields surged to multiyear highs before paring some gains. The 10-year Treasury note yield reached 5.344%, its highest point since 2002, and the 30-year Treasury bond yield also hit a 24-year high.
Oil prices climbed following reports that the U.S. is deploying a third aircraft carrier strike group to the Middle East. Brent crude futures rose over 4% to close at $102.31 per barrel, while U.S. West Texas Intermediate futures advanced 2.7% to settle at $92.87 a barrel.
Attention is now focused on the September nonfarm payrolls report, with economists anticipating job growth of 84,000 and the unemployment rate holding steady at 4.1%. This report will be crucial as traders assess the Federal Reserve's next monetary policy move, with Fed funds futures indicating a 72% probability of the central bank maintaining current rates in October.
Christopher Hodge, Chief U.S. Economist at Natixis CIB Americas, suggested that a strong jobs report alone might not compel the Fed to raise rates further, given the current narrative of a stable labor market. He forecasts solid gains in manufacturing and construction, anticipating payroll growth of 60,000 for September.
In other market news, European bond yields retreated on Friday, heading towards the end of a volatile week. The pan-European Stoxx 600 edged higher in early trading, led by tech stocks. Volvo shares slumped in premarket trading due to challenging market conditions in China and the U.S. impacting sales volumes.
Brazilians are set to vote in a high-stakes presidential election on October 4th. Separately, the U.S. Securities and Exchange Commission has proposed new rules to facilitate crypto asset custody for investment advisers and funds.
Crypto exchange Bitget is not expecting to recover a significant portion of the $388 million lost in a recent hack, according to its CEO. Nike shares slid in extended trading after missing quarterly revenue expectations and announcing layoffs.
