U.S. stock futures rose on Friday as investors braced for a key monthly jobs report that also focused on the Middle East crisis and the return to work at U.S. ports.
S&P 500 futures (ES=F) rose 0.3%, while Dow Jones Industrial Average futures (YM=F) rose about 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) edged 0.4% higher.
Investors are making time for the release of the September jobs report, which is expected to provide further evidence that the labor market is cooling but not collapsing. A rapid weakening could prompt the Federal Reserve to cut rates again by an excessive 0.5% in November.
Friday’s report, due out at 8:30 a.m. ET, is expected to show that nonfarm payrolls rose by 150,000. But Wall Street will likely focus less on hiring and more on the unemployment rate, where a gain could boost the chances of a bigger rate cut.
Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards
While stocks are on track for weekly losses, markets have shown some resilience in the face of a tough week with worrying headlines. The major gauges fell 1% or less on Thursday, with the S&P 500 and Dow still within striking distance of record highs.
In recent days, a massive port strike, the devastation of Hurricane Helene and the prospect of wider conflict in the Middle East have created the potential to raise prices and fuel inflation. That, in turn, cast doubt on the Fed’s desired 0.25% interest rate cut.
In a welcome move, the US dockworkers’ strike ended after a tentative wage deal was reached late Thursday, although some issues remain to be resolved later this year.
On the other hand, a barrage of Israeli attacks on Beirut kept alive Middle East concerns that have driven up oil prices. Western leaders warned of “uncontrollable escalation” as investors waited to see whether Israel will attack Iranian oil facilities – a move President Biden said is under discussion.
Oil is on track for its biggest weekly gain in two years as tensions rise. Futures on Brent crude (BZ=F) and West Texas Intermediate (CL=F) rose more than 1% on Friday morning, after posting a 5% gain the day before.
