U.S. stock futures moved higher on Friday as investors awaited September employment data and continued to assess volatility across global government bond markets.
At 07:16 GMT, Dow futures were up 137 points, or 0.3%, while S&P 500 futures gained 20 points, or 0.3%. Nasdaq 100 futures advanced 129 points, or 0.4%.
The major Wall Street indices closed modestly higher on Thursday after an earlier government bond sell-off eased and Treasury yields subsequently declined.
Micron’s quarterly results also contributed to the session’s gains. The chipmaker issued guidance and said it expects memory-chip supply and demand conditions to be considerably tighter over the next two fiscal years than during fiscal 2026.
U.S. Payrolls Expected to Slow in September
Investors are awaiting the September U.S. nonfarm payrolls report for further information on labour-market conditions and their potential implications for Federal Reserve monetary policy.
The U.S. economy is expected to have added 89,000 jobs during September, compared with 162,000 in August. The unemployment rate is forecast to remain unchanged at 4.1%.
“Clearly, the monthly jobs reports are always a macro highlight, but this is an important one, as the continued data resilience has been a huge factor supporting U.S. risk assets,” Deutsche Bank analysts said.
The analysts added that continued resilience in economic data has given the Federal Reserve greater scope to raise interest rates.
The Fed increased its benchmark rate by 25 basis points last month amid inflation pressures and continued resilience in the labour market.
Treasury Yields Retreat as Rate Expectations Shift
Expectations for another near-term Federal Reserve rate increase have moderated following comments from policymakers.
Markets were pricing approximately a 30% probability of an interest-rate increase at the Fed’s October meeting, compared with around 70% on Monday, according to the supplied information.
The change in rate expectations coincided with a pullback in government bond yields on Thursday after the benchmark U.S. 10-year Treasury yield had earlier reached its highest intraday level since 2002.
The 10-year yield ultimately declined by more than four basis points, while the two-year Treasury yield recorded its largest daily decline since July.
Government bond markets nevertheless remain sensitive to inflation, monetary policy expectations and developments in the Middle East. Spending on artificial intelligence infrastructure has also been cited in the supplied information as a factor affecting demand and inflation.
