U.S. stock futures rose on Friday as markets prepared for September employment figures and assessed recent movements in global government bond yields.
At 07:16 GMT, Dow futures gained 137 points, or 0.3%, while S&P 500 futures were up 20 points, or 0.3%. Nasdaq 100 futures increased 129 points, or 0.4%.
Wall Street’s major indices finished slightly higher on Thursday after an earlier decline in government bond prices moderated and Treasury yields subsequently moved lower.
Micron’s quarterly update also supported equities. The semiconductor company issued guidance and said it expects memory-chip supply and demand to be considerably tighter over the next two fiscal years than in fiscal 2026.
September Payroll Growth Forecast at 89,000
Markets are awaiting September’s U.S. nonfarm payrolls report for further evidence about labour-market conditions and the potential implications for Federal Reserve policy.
Economists expect the U.S. economy to have added 89,000 jobs during September, down from 162,000 in August. The unemployment rate is forecast to remain at 4.1%.
“Clearly, the monthly jobs reports are always a macro highlight, but this is an important one, as the continued data resilience has been a huge factor supporting U.S. risk assets,” Deutsche Bank analysts said.
The analysts also said resilient economic data have provided the Federal Reserve with greater scope to increase borrowing costs.
The central bank raised its benchmark interest rate by 25 basis points last month amid inflation pressures and continued resilience in employment data.
Fed Rate Expectations Shift as Treasury Yields Retreat
Market expectations for another Federal Reserve rate increase in October have declined following comments from policymakers.
The implied probability of an October rate increase stood at approximately 30%, compared with around 70% on Monday, according to the supplied information.
The shift coincided with a reversal in Treasury yields on Thursday. The benchmark U.S. 10-year Treasury yield had earlier reached its highest intraday level since 2002 before ending the session more than four basis points lower.
The two-year Treasury yield, which is particularly sensitive to monetary policy expectations, recorded its largest one-day decline since July.
Bond markets remain sensitive to inflation data, the outlook for monetary policy and developments in the Middle East. Spending on artificial intelligence infrastructure was also cited in the supplied information as affecting demand and inflation.
Nike Drops After Fiscal 2027 Revenue Outlook
Nike (NYSE:NKE) shares declined more than 8% in after-hours trading after the company issued a fiscal 2027 revenue forecast and outlined further changes to its operations.
The athletic apparel company expects revenue to decline by a high-single-digit percentage in fiscal 2027. Analysts had forecast a decline of approximately 2%, according to LSEG data cited by Reuters.
Nike also plans further job reductions and changes to its global divisions as Chief Executive Elliott Hill continues the company’s restructuring.
The company has not yet specified how many positions will be affected and said it expects to begin notifying affected employees in 2027.
Amazon Reportedly Considers $8 Billion Nvidia Chip Financing Structure
Amazon (NASDAQ:AMZN) is considering a financing structure involving approximately $8 billion of Nvidia (NASDAQ:NVDA) artificial intelligence chips, according to a Financial Times report citing people familiar with the matter.
Amazon has reportedly held discussions with investors about placing thousands of Nvidia Grace Blackwell chips into a special purpose vehicle.
Under the reported proposal, Amazon would lease the chips back for use in its U.S. data centres, while the special purpose vehicle would raise financing from external investors through debt issuance.
The Financial Times reported that the structure would transfer some of the costs associated with the chips to external investors. The supplied information does not indicate that an agreement has been reached or a transaction completed.
Leave a Reply