US Stock Futures and Labor Market Update

US stock futures hover near the flatline as markets prepare for the critical nonfarm payrolls report on Friday, expected to reveal a stable but decelerating labor market ahead of the Federal Reserve’s meetings.

1. Nonfarm Payrolls Loom Large

Markets are focused on the September nonfarm payrolls report set for release at 08:30 ET on Friday. The US economy is anticipated to maintain moderate job growth in the last month of Q3, with the unemployment rate expected to match August’s level of 4.2%.

Meeting these expectations could reduce the Federal Reserve’s need for another significant rate cut in its upcoming meetings. Last month, the Fed made a jumbo reduction in borrowing costs to strengthen the labor market. Potential impacts on the report could stem from Hurricane Helene and an ongoing strike by Boeing workers.

2. Futures Muted

US stock futures exhibited muted behavior as investors braced for the crucial jobs data. By 03:27 ET, both Dow and S&P 500 futures were mostly unchanged, while Nasdaq 100 futures ticked up by 0.1%. Main indices showed slight declines in the previous session, indicating caution ahead of the nonfarm report, compounded by escalating Middle East tensions.

3. Dockworkers Suspend Strike

Dockworkers on the East and Gulf coasts are suspending their strike after an agreement was reached between their union and ocean shipping firms. The stoppage had disrupted ports nationwide, risking substantial economic impacts.

The tentative deal includes approximately a 62% wage increase over six years, between the union’s sought 77% and the employer’s offered 50%. Key issues persist, especially concerning automation fears impacting job security.

4. Seven & i Holdings Eyeing Sale of Majority Stake

Japan’s Seven & i Holdings is considering selling a majority stake in its supermarket operations, including its Ito-Yokado division, according to Nikkei. This process may begin by the end of the year, targeting overseas investment funds. A spokesperson stated that no official announcements have been made yet.

5. Oil Gains

Oil prices slightly rose on Friday and are on track for their largest weekly gain in over a year, influenced by rising Middle East conflict risks. Brent gained 0.4% to $77.96 per barrel, while U.S. crude (WTI) increased by 0.5% to $74.06 per barrel.

Brent crude futures are expected to achieve an 8% weekly gain, the highest since February 2023.

(Reuters contributed reporting.)