Stock Futures Rise Ahead of August Jobs Report as S&P 500 Looks to Add to Record High

Stock futures moved higher Friday morning as investors prepared for the release of labor market data that will factor into the Federal Reserve’s upcoming decision on interest rates. 

Futures tied to the S&P 500 and the tech-heavy Nasdaq were recently up 0.2% and 0.5%, respectively, while Dow Jones Industrial Average futures fell less than 0.1%. Stocks are coming off a winning session on Thursday, when the benchmark S&P 500 closed at a record high and the other two major indexes finished the day fractionally below new highs of their own.

Market participants are bracing for the release of the August jobs report, scheduled for 8:30 a.m. ET. The report from the Bureau of Labor Statistics is expected to show that U.S. employers added 75,000 jobs last month and that the unemployment rate inched higher to 4.3%, according to the consensus view of economists.

Fed Chair Jerome Powell signaled last month that the central bank could cut its benchmark interest rate at its next policy committee meeting on Sep. 17, amid signs that the labor market is weakening. Investor expectations that the Fed will start cutting rates this month have played a large role in the stock market’s recent rally. A jobs report today that shows the labor market is stronger than recent data have shown would be good news for the economy, but it could also dash expectations that the Fed will be in a position to cut rates soon.

The yield on the 10-year Treasury, which affects borrowing costs on all sorts of loans, notably mortgages, was at 4.16% this morning, down from 4.18% at yesterday’s close. The yield is trading at its lowest levels since late April, as investors have grown more confident in the likelihood that rate cuts are coming.

Among stocks on the move this morning, shares of Broadcom (AVGO) surged 11% after the chip giant reported better-than-expected quarterly results amid booming demand for its AI offerings.

Tesla (TSLA) shares were up 2% after the company unveiled a pay package plan for CEO Elon Musk that sets ambitious performance targets over the next ten years and could boost his overall compensation to $1 trillion.

Other mega-cap technology stocks were mixed this morning. Microsoft (MSFT) and Meta Platforms (META) rose slightly, while Nvidia (NVDA), Apple (AAPL), Alphabet (GOOG) and Amazon (AMZN) ticked lower.

Bitcoin was at $112,300 in recent trading, up from around $110,000 late yesterday afternoon. The cryptocurrency has come under pressure in recent weeks after hitting a record high of more than $124,000 in mid-August.

The U.S. dollar index, which tracks the performance of the U.S. dollar against a basket of foreign currencies, slipped 0.3% to around 98.

Gold prices, which fell on Thursday after hitting record highs for three straight days, were inching higher this morning. Gold futures rose 0.1% to $3,610 an ounce.

West Texas Intermediate futures, the U.S. crude oil benchmark, slipped 0.8% to $63 per barrel, losing ground for the third consecutive day.