U.S. Futures Edge Higher as Labor Data and Fed Meeting Loom Large

U.S. stock futures nudged higher on Thursday, as investors looked ahead to fresh labor market data and next week’s closely watched Federal Reserve policy meeting.

By 05:35 ET (10:35 GMT):

• Dow Jones futures were up 50 points (+0.1%)
• S&P 500 futures gained 5 points (+0.1%)
• Nasdaq 100 futures climbed 18 points (+0.1%)

The major indices advanced on Wednesday, after weaker private-sector payrolls data reinforced expectations that the Fed will cut interest rates by 25 basis points next week, with markets pricing in roughly a 90% probability of a move.

Weekly jobless claims in focus

Thursday’s attention now turns to the weekly jobless claims report from the U.S. Labor Department.

Economists expect initial jobless claims to come in at 219,000, slightly above the 216,000 reading from the prior week. Last week’s figure marked a seven-month low, suggesting that while layoffs remain subdued, demand for labor is not particularly strong.

Earlier in the week, the ADP employment report showed that U.S. private payrolls shrank by 32,000 in November, a surprise decline after a revised gain in October and well below forecasts for an increase — further evidence of cooling in the labor market.

Although a record-long federal government shutdown has delayed more comprehensive official employment data, the Fed argued at its September and October meetings that there was already enough evidence of a slowdown in hiring to justify easier monetary policy.

Fed leadership speculation adds to dovish tone

Dovish sentiment has also been reinforced by growing speculation over the Fed’s future leadership.

Reports that the Trump administration abruptly cancelled interviews with several other candidates for Fed chair have strengthened the view that Kevin Hassett — seen as more dovish than current Chair Jerome Powell — could take over when Powell’s term ends in 2026. Markets view such a shift as supportive of a more accommodative policy stance over the medium term.

Salesforce, Five Below gain; Snowflake drops, Meta in EU spotlight

In corporate news:

• Salesforce (NYSE: CRM) shares climbed in premarket trading after the software giant raised its fiscal 2026 revenue and adjusted income guidance, citing strong expected demand for its AI-enhanced agent platform, particularly from large enterprise customers.
• Five Below (NASDAQ: FIVE) also traded higher after the discount retailer delivered better-than-expected third-quarter earnings, driven by solid comparable sales growth and ongoing store expansion.
• Snowflake (NYSE: SNOW), by contrast, fell sharply after the cloud data platform issued a slightly weaker outlook for product revenue growth for the January quarter, disappointing investors.
• Meta Platforms (NASDAQ: META) is set to be in focus after the European Commission opened a new antitrust investigation into its rollout of AI features in WhatsApp, underscoring intensifying regulatory scrutiny of Big Tech’s use of generative AI.