Stock futures climb as jobs data impacts Fed rate expectations

US stock futures increased Thursday as investors anticipated upcoming earnings reports and an inflation update. This follows a stronger-than-expected January jobs report.

Dow Jones Industrial Average futures (YM=F) and S&P 500 futures (ES=F) rose approximately 0.3%, while those on the tech-heavy Nasdaq 100 (NQ=F) added 0.2%. The major stock indexes ended little changed in Wednesday’s trading session.

Market Data

As of 3:25:05 GMT-5, Market open, Dow futures were trading at 6,979.00, up 18.50 (0.27%).

Economic Indicators

Attention is now focused on Friday’s Consumer Price Index report, which is the Federal Reserve’s preferred measure of inflation. A lower reading could indicate easing price pressures while economic growth remains stable.

Weekly jobless claims data, due later Thursday, is also being closely watched. The January jobs report revealed that the US economy added twice as many jobs than initially projected. This robust hiring data complicates expectations for Federal Reserve policy. A resilient labor market, combined with persistent inflation, suggests that interest-rate cuts may be delayed.

Earnings Reports

Cisco Systems (CSCO) shares declined roughly 7% after the company missed profit expectations on Wednesday. McDonald’s (MCD) shares also slipped despite the company exceeding earnings forecasts. Upcoming earnings reports include Coinbase (COIN), Applied Materials (AMAT), and Rivian (RIVN), all scheduled for after the market close.

Commodities

Oil prices increased amid rising tensions between the US and Iran.

Gold prices fell following the jobs report, which reduced expectations for near-term interest rate cuts.