Stock Markets Today: US futures edge higher after jobless rate falls, broad jobs report

U.S. stock futures rose on Friday as investors digested a key monthly jobs report that showed hiring in the U.S. economy remained strong. The Middle East crisis and the return to work at US ports were also in high focus.

S&P 500 futures (ES=F) gained 0.5%, while Dow Jones Industrial Average futures (YM=F) added roughly 0.3%. The tech-heavy Nasdaq 100 (NQ=F) contracted 0.7% higher.

September's jobs report largely beat expectations as the U.S. economy added 254,000 jobs last month and the unemployment rate fell to 4.1%. Overall, the report found the labor market remains strong, even amid signs it is cooling. Josh Shaffer of Yahoo Finance has more details here.

Jobs reports are betting on a smaller rate cut from the Federal Reserve next month. According to the CME FedWatch tool, more than 90% of bets get a 0.25% cut, as opposed to a larger, 0.50% cut.

Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

Stocks are looking to recover weekly losses, as markets showed some resilience in the face of a rough week of worrying headlines. The S&P 500 and Dow are still within striking distance of record highs, with major gauges off 1% or less as of Thursday's close.

In recent days, a massive port strike, the devastation of Hurricane Helen and the prospect of a wider conflict in the Middle East have raised prices and fan inflation.

In a welcome move, a strike by US dockworkers ended after a tentative wage deal was agreed late on Thursday, although some issues remain to be settled later this year.

On the negative side, an Israeli barrage in Beirut kept alive Middle East concerns that sent oil prices higher. Western leaders warned of “uncontrolled escalation” as investors waited to see if Israel would attack Iran's oil installations — a move President Biden said was under discussion.

Oil is on track for its biggest weekly gain in two years as tensions rise. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures rose more than 1% on Friday morning, after a 5% gain the previous day.

live2 updates

Fri, Oct 4, 2024 at 6:07 am PDT

Markets priced in less Fed easing after strong jobs report

An expected September jobs report on lower interest rate cuts from the Federal Reserve in 2024 pushed the market much stronger.

After the report, markets priced in a roughly 10% chance that the Fed would cut interest rates by half a percentage point in November, according to the CME FedWatch tool, down from a 53% chance seen a week earlier.

Robert Sokin, Citi's senior global economist, told Yahoo Finance that the expected jobs report made the Fed less likely to move “urgently” to its September meeting when the central bank cut interest rates by half a percentage point. .

“It gives the Fed a lot of pressure,” he said, adding that it is uncertain whether the Fed will make another 50-basis point cut this year.

“Looking at the labor market strength evident in the September employment report, the Fed's real debate should be whether to ease monetary policy at all,” Paul Ashworth, chief North American economist at Capital Economics, wrote in a note to clients on Friday. “A no hope [50 basis point] The cut is long gone.”
Fri, Oct 4, 2024 at 5:50 am PDT

September jobs report crushes expectations as US economy adds 254,000 jobs, unemployment rate falls to 4.1%

The U.S. labor market added more jobs than expected in September while the unemployment rate unexpectedly fell, reflecting a much stronger job market picture than Wall Street expected.

Data from the Bureau of Labor Statistics released Friday showed the labor market added 254,000 payrolls in September, more than the 150,000 expected by economists.

Meanwhile, the unemployment rate fell to 4.1% from 4.2% in August. Job additions in September came in higher than a revised 159,000.

Read more here.