U.S. stock futures drift higher with nonfarm payrolls in focus
U.S. stock index futures experienced a slight increase on Thursday evening as market attention turned to the forthcoming labor market data, which could offer additional insight into the economy and interest rates. The surge in oil prices, attributed to Washington's decision to deploy more troops to the Middle East, along with persistently rising Treasury yields, further unsettled Wall Street traders.
The S&P 500 Futures climbed 0.1% to 7,732.0 points by 19:54 ET (23:54 GMT), while the Nasdaq 100 Futures edged up by 0.23% to 30,831.50 points, and the Dow Jones Futures rose 0.07% to 51,276.0 points.
Investors eagerly await the nonfarm payrolls data for September, which is scheduled to be released on Friday morning. Economists anticipate that any indication of a robust labor market will provide the Federal Reserve with additional leeway to raise interest rates, particularly given that inflation remains above the central bank's 2% annual target. Dallas Fed President Lorie Logan stated on Thursday evening that interest rates should be increased by at least 50 basis points to combat stubborn inflation.
Fed Governor Lisa Cook cautioned that artificial intelligence-driven inflation could pose a significant risk for 2027. Prior to the release of the payrolls data, Minneapolis Fed President Neel Kashkari had indicated that additional rate hikes might be necessary to temper economic growth heading into 2027, although he was uncertain about the timing of the next hike.
The market's reaction on Thursday was tempered by gains in technology and chipmaking stocks, sparked by Micron Technology Inc's (NASDAQ:MU) strong fiscal fourth-quarter earnings and a better-than-expected outlook. AI-fueled demand for chips continued to be robust, according to the memory chip manufacturer, and is expected to remain strong in the years to come.
Despite these gains in the tech sector, Wall Street indexes experienced a modest rise on Thursday, driven primarily by Micron's performance.
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