US equity futures advanced on Friday, with Dow futures up roughly 300 points, as a pause in the Treasury selloff and a retreat in oil prices provided temporary relief to investors ahead of the September employment report. The payrolls data, due before the opening bell, represents the final major snapshot of the labor market before the Federal Reserve's October policy meeting.
Futures tied to the Dow Jones Industrial Average rose about 0.58%, while S&P 500 futures added 0.50% and Nasdaq 100 futures gained approximately 0.72%. The tech-heavy index outperformed as chipmakers and megacap technology names rebounded in pre-market trading.
Payrolls report could determine whether October stays off the table
Economists surveyed expect September payroll growth of roughly 85,000 to 90,000, a sharp slowdown from August's 162,000 gain, with the unemployment rate holding steady at 4.1%. A stronger-than-expected reading would challenge the recent rapid decline in rate-hike expectations. Markets now price in about a 76% probability that the Fed leaves rates unchanged in October, up from roughly 29% a week ago.
Bonds and oil offer Wall Street some relief
The Treasury rout paused after the 10-year yield touched 5.34%, a 24-year high, before easing toward 5.23%. The 30-year yield climbed above 5.6% earlier in the week. The two-year yield hovered near a one-week low as traders scaled back bets on further tightening in October.
Oil provided an additional tailwind. Brent crude slipped below $100 a barrel after European Union governments discussed a French proposal to release 50 million barrels of diesel, alongside a possible 50 million-barrel crude release by International Energy Agency members. Lower energy prices can ease inflation pressures and support consumer spending.
Nvidia and megacaps lead the pre-market rebound
Technology shares were among the strongest pre-market performers. Nvidia gained about 0.9%, while Broadcom and AMD each advanced roughly 1%. Alphabet and Tesla also rose close to 1%. Falling yields are particularly beneficial to long-duration technology stocks because they reduce the discount rate applied to future earnings. The move underscores how heavily Wall Street continues to rely on the AI trade after tech helped the Nasdaq outperform during September.
Nike's turnaround suffers another credibility hit
Nike shares sank about 10% after the athletic apparel maker forecast a high-single-digit revenue decline for fiscal 2027, announced further job cuts and reorganised its global operations. First-quarter revenue fell 4% to $11.21 billion, with Greater China remaining a major weak spot. CFRA analyst Zachary Warring told Bloomberg Television that both the quarter and full-year outlook were disappointing, arguing that Nike's turnaround appeared less advanced than investors might expect nearly two years into Elliott Hill's tenure.
Moderna and crypto show risk appetite returning
Moderna gained more than 2% after Nasdaq announced the biotech company will join the Nasdaq-100 on October 9, replacing Warner Bros. Discovery. The inclusion creates a new source of mechanical demand from index-tracking funds. Risk appetite was also visible in crypto, with Bitcoin up about 2% and Coinbase and Strategy gaining nearly 3% before the bell.
Those moves remain vulnerable to the payrolls report. Softer jobs data could pull yields lower and extend Friday's risk rally, while another upside surprise could quickly revive the higher-for-longer trade that has pressured equities in recent weeks.
This article is for informational purposes only and does not constitute financial advice.
