U.S. stock futures rose on Friday as investors digested a key monthly jobs report that showed hiring in the U.S. economy remains robust. The crisis in the Middle East and the return to work in American ports also remained top priorities.
S&P 500 futures (ES=F) rose 0.5%, while Dow Jones Industrial Average futures (YM=F) rose about 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) edged 0.7% higher.
September’s jobs numbers far exceeded expectations as the U.S. economy added 254,000 jobs last month and the unemployment rate fell to 4.1%. Overall, the report shows that the labor market remains robust, even as there are signs that it has cooled. Yahoo Finance’s Josh Schafer has more details on the report here.
The jobs report led to a smaller rate cut by the Federal Reserve next month. According to the CME FedWatch Tool, over 90% of bets are based on a 0.25% discount, as opposed to a larger 0.50% discount.
Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards
Stocks are trying to pare weekly losses as markets have shown some resilience after a tough week of 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 strike at ports, the devastation from Hurricane Helene and the prospect of wider conflict in the Middle East have created the potential to raise prices and fuel inflation.
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.
