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S&P500: Futures Edge Higher Today as Investors Eye Jobs Report and Fed Policy
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Key Points:
- US stock futures edge higher as traders await payrolls and jobless claims data that could guide Fed policy outlook.
- Payrolls forecast at 75,000 vs 104,000 prior, with jobless claims expected at 230,000 as labor market cools further.
- Traders eye ISM services PMI, seen rising to 50.8, alongside tariff policy updates that could sway growth-sensitive sectors.
Stock Futures Edge Higher as Traders Brace for Jobs Data
U.S. stock futures rose slightly on Thursday in the pre-market session as investors looked ahead to key labor market updates that could set the tone for near-term market direction.
S&P 500 and Nasdaq-100 futures were up 0.2% and 0.3%, while Dow Jones Industrial Average futures added just 4 points. The modest move comes after tech-driven gains lifted the S&P 500 and Nasdaq in the previous session, while the Dow slipped on weakness in economically sensitive names.
Will Jobs Data Confirm Signs of Labor Market Cooling?
Traders are closely eyeing Thursday’s ADP private payrolls report, expected to show 75,000 new jobs in August, down from 104,000 in July. Weekly jobless claims, due shortly after, are forecast to tick up to 230,000 from 229,000. These figures arrive ahead of Friday’s official nonfarm payrolls release, a key indicator that could influence Federal Reserve expectations.
Recent data already pointed to a cooling trend, with job openings dropping to levels last seen during the pandemic, raising concerns about weakening demand for workers.
Tech Strength Keeps Nasdaq in Focus
Tech continues to underpin market momentum. Alphabet and Apple led gains on Wednesday after Alphabet sidestepped the threat of a forced breakup in an antitrust case. The news boosted confidence in mega-cap tech, helping the Nasdaq rally. However, the broader picture remains mixed, as labor market uncertainty capped equity upside and weighed on cyclical sectors tied to the real economy.
How Are Corporate Earnings Shaping Sentiment?
Broadcom shares traded nearly 1% higher in premarket action ahead of earnings results due after the close, with traders watching for signs of resilience in chip demand.
Salesforce, meanwhile, fell more than 7% after issuing weaker-than-expected revenue guidance for the third quarter, overshadowing its stronger-than-forecast Q2 results. The guidance miss raises questions about enterprise software spending, a key driver for the sector.
What Else Is on Traders’ Radar?
Beyond labor data, markets are watching Washington, where the White House trade agenda is back in focus after President Trump pressed the Supreme Court to fast-track a tariff ruling. At 14:00 GMT, the ISM services PMI is due, with expectations for a slight uptick to 50.8 from 50.1. Any surprise could sway sentiment on growth-sensitive sectors.
Market Outlook
The near-term direction will hinge on whether labor market reports confirm a gradual slowdown without signaling recession risk. A softer print could reinforce expectations for the Fed to stay on hold, providing support for equities, especially in tech. But signs of deeper labor weakness may shift attention back to earnings resilience as the driver for market performance.
More Information in our Economic Calendar.
About the Author
James Hyerczykauthor
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.
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