Nonfarm payrolls loom large; bond market volatility - what’s moving markets

On Friday, U.S. stock futures rose as investors anticipated the release of key employment data for September. The Dow futures gained 137 points, the S&P 500 futures added 20 points, and the Nasdaq 100 futures climbed 129 points. These gains came after a period of bond market volatility, with stocks managing to stay positive despite a choppy trading session.

Nike shares saw a significant drop, falling over 8% in after-hours trading following a disappointing revenue outlook. Meanwhile, chipmaker Micron reported strong guidance, citing tighter memory chip supply and demand conditions in the coming years. Analysts from Deutsche Bank noted that the robust job data has helped Fed officials maintain flexibility in raising rates, aiming to curb inflation despite the risk to growth and the labor market.

Currently, there is around a 30% chance of a rate hike at the Fed’s October meeting, a significant shift from the previous 70% probability. Furthermore, Amazon is considering selling $8 billion worth of Nvidia chips to external investors, hoping to improve its balance sheet and adopt a more asset-light approach.