Stock futures gain as traders bet weak jobs data will keep Fed from hiking rates: Live updates

Stock futures experienced a rise on Friday as traders anticipated that an unexpected dip in the latest jobs report could prevent the Federal Reserve from raising interest rates. Nasdaq 100 futures led the gains, increasing by 0.8%, while S&P 500 futures rose by 0.4%. Dow Jones Industrial Average futures climbed by 110 points, or 0.2%.

July's nonfarm payrolls report revealed a decline of 23,000 jobs, while economists surveyed by Dow Jones had predicted a rise of 83,000. The unemployment rate fell to 4.1% from 4.2%. Airbnb shares surged by 7% in premarket trading following the company's strong performance in both top-line and bottom-line earnings. Cloudflare also rose by 16% premarket after issuing a solid outlook for the year and the current quarter.

Meanwhile, oil prices saw a slight decline on Friday, with West Texas Intermediate futures for September delivery falling by 0.6% to $76.85 per barrel, and Brent crude, the international benchmark, dropping by 0.7% to $81.90. Wall Street concluded a losing session, with the Dow falling by more than 460 points, or 0.9%, after breaking a five-day winning streak.

The S&P 500 slipped by 0.2%, and the Nasdaq Composite dropped by 0.1%. Despite the recent pullback, stocks are on track for a second consecutive week of gains, with the Nasdaq potentially achieving its best weekly performance since May, attributed to a bounce-back in chip stocks. The iShares Semiconductor ETF (SOXX) has risen by more than 5% this week.

Despite the U.S. pullback, market optimism has grown on many fronts, with investors hopeful that a deal to reopen the Strait of Hormuz will eventually lead to lower oil prices and reduced inflation expectations. Tech has outperformed, with semiconductors rallying this week, following last month's unwinding of the momentum trade that convinced many the stock market needed a reset for the next leg higher.

Strong earnings continue to bolster recent confidence, with Tom Lee, head of research at Fundstrat Global Advisors, predicting that the market could reach 7,900 or 8,000 this month. Job growth is not expected to show significant improvement in July, with payrolls and the unemployment rate likely to remain steady, and economists focusing on other indicators to gauge the health of the labor market.

Nonfarm payrolls are anticipated to increase by just 83,000, with the unemployment rate remaining unchanged at 4.2%. While headline numbers will be important, additional insights into labor market strength will be gleaned from participation in the labor force, wage growth, and the sectors driving the labor market. These factors will provide a comprehensive picture for Federal Reserve officials, who have expressed both confidence in the labor market and concerns about inflation regarding potential interest rate hikes.

Preparing for Wall Street's focus on the upcoming jobs report, the market has seen notable performance in precious metals. Precious metals, including gold and silver, rallied Friday, setting strong weekly gains for months. December gold futures reached a high of $4,380.20 an ounce, the highest since June 17, marking gold's best weekly performance since January 23.

Silver also experienced a sharp advance, with September futures reaching $64.96 an ounce, marking the highest since June 23 and a 11.84% gain for the week, representing silver's largest weekly increase since February. Despite the optimism, a recent AAII poll revealed that more investors view the current interest rate environment as appropriate, with 55.1% supporting the Federal Reserve's decision to keep rates steady, compared to 30.6% advocating for rate hikes.

Nearly 8.7% of investors expressed uncertainty, while only 5.6% believed rates should have been lowered.