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US stock futures traded slightly lower on Friday as investors awaited a key labor market report that could influence the Federal Reserve’s next decision on interest rates. By 06:21 ET (10:21 GMT), Dow futures had declined by 130 points (0.3%), S&P 500 futures were down by 34 points (0.6%), and Nasdaq 100 futures dropped 207 points (1.1%).
On Thursday, the Dow Jones Industrial Average and S&P 500 closed lower, while the Nasdaq Composite saw a slight gain. Trading remained volatile as market participants processed mixed employment data. While August saw the smallest hiring numbers since 2021, a drop in jobless claims and an increase in services sector activity helped temper concerns.
So far in September, the S&P 500 has lost over 2.5%, with the month historically known for weaker stock performance.
Economists are forecasting 164,000 jobs added to the US economy in August, an improvement from July’s disappointing 114,000. July’s weak figure had fueled fears of a potential recession, triggering market declines. The August payroll data could be crucial in shaping the Fed’s decision at its Sept. 17-18 meeting.
There is currently a 59% probability of a 25-basis point rate cut at the upcoming meeting, as borrowing costs are already at their highest level in 23 years, between 5.25% and 5.5%. However, another weak jobs report might raise recession concerns and prompt the Fed to consider a larger 50-basis point cut.
Broadcom Shares Slide on Underwhelming Sales Outlook
Broadcom’s shares fell over 9% in premarket trading after the company’s guidance for fourth-quarter sales disappointed. The firm expects $14 billion in revenue, slightly below market estimates of $14.04 billion. While Broadcom’s AI-related business remains robust, the underperformance in non-AI segments dampened investor sentiment.
Despite the sales miss, Broadcom raised its full-year revenue forecast for AI-related products to $12 billion, up from a previous estimate of $11 billion. Nevertheless, other chipmakers, including Nvidia, Advanced Micro Devices, Marvell Technology, and Micron Technology, also saw declines in response to Broadcom’s report.
Crude Oil Prices Firm Amid Jobs Data Anticipation
Oil prices were slightly higher during early European trading as investors awaited the US jobs report, alongside weighing a large drawdown in US crude inventories and a potential production delay by OPEC+ producers. Brent crude futures rose 13 cents to $72.82, and US WTI crude futures edged up 12 cents to $69.27.
