Updated 2 min read
US stock futures rose on Friday as investors waited for the pivotal monthly jobs report to confirm or contradict the softness shown in this week’s labor data, with an interest-rate cut now seen as all but certain.
S&P 500 futures (ES=F) were up 0.2%, coming off a fresh all-time closing high for the broad stock benchmark. Contracts on the Dow Jones Industrial Average (YM=F) tipped slightly higher, while those on the tech-heavy Nasdaq 100 (NQ=F) led gains, up 0.4%.
The final countdown to the August jobs report from the Bureau of Labor Statistics is on, with the data due at 8:30 a.m. ET. The report is expected to confirm recent signs the labor market is cooling and unemployment has ticked up.
Wall Street is now almost certain that a rate cut is coming at the Federal Reserve’s September meeting, with traders pricing in a 99% chance of a reduction. If the August jobs report extends a recent run of weak labor data, however, it could reshape how deep or how fast the Fed cuts rates.
On Thursday, stocks rose as a rise in jobless claims and slowing private sector jobs growth amped up anticipation for the August jobs figures.
Meanwhile, President Trump’s pick for Fed governor, Stephen Miran, said at a Senate hearing that he didn’t plan on withdrawing from his White House role even if he is confirmed to the central bank. Trump also kept up pressure on Fed governor Lisa Cook as well as an FTC commissioner in his quest to oust both officials.
On the trade front, while the Supreme Court considers hearing a case that could invalidate most of Trump’s tariffs, the president signed an order Thursday implementing the US trade deal with Japan. The pact sets 15% tariffs on imports from the country.
Read more: The latest on Trump’s tariffs
After the market close, Lululemon (LULU) stock dived after the apparel retailer slashed forecasts, citing waning demand and tariff woes. Broadcom (AVGO) shares drifted up as its earnings showcased soaring AI chip demand.
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Broadcom jumps on sales outlook boost, amid buzz over OpenAI deal report
Broadcom (AVGO) is riding higher on a wave of AI optimism before the bell, with shares up around 8% as investors welcome an upbeat outlook and a Financial Times report that the US chipmaker has signed a big deal with (OPAI.PVT).
Reuters reports:
The firm, one of the world’s most valuable chipmakers, has become a key player in the generative AI boom by designing custom semiconductors for cloud giants seeking alternatives to Nvidia‘s GPUs.
The company on Thursday said it has secured over $10 billion in AI infrastructure orders from a new customer, with [CEO Hock] Tan forecasting “significantly improved” AI revenue growth in fiscal year 2026.
Investors have bet big on AI-driven chipmakers, and have propelled Broadcom’s shares nearly 32% higher so far this year, after the company’s valuation crossed $1 trillion in December.
The timing of Broadcom’s latest $10 billion AI deal has fueled speculation that OpenAI is the unnamed customer, following a Financial Times report on Thursday that the ChatGPT maker is working with Broadcom to develop its own custom AI chips.
Read more here. Premium members can read the full FT report here.
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Premarket trending tickers: Broadcom, DocuSign and lululemon
Here’s a look at some of the top stocks trending in premarket trading:
Broadcom (AVGO) stock rose 8% before the bell on Friday after a upbeat outlook for artificial intelligence revenue and CEO Hock Tan’s pledge to stay on for five more years reassured investors.
DocuSign (DOCU) stock rose 8% in premarket trading on Friday reported an earnings beat and revenue outlook raise on Thursday.
lululemon (LULU) stock slumped on Friday in premarket trading after slashing its annual profit and sales forecasts, hurt by tepid
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August jobs report to show ‘softness growing’
After a run of disappointing job market readings this week, the BLS will release the August nonfarm-payrolls report at 8:30 a.m. ET today.
The data is expected to confirm that the US labor market is weakening. That will feed into Federal Reserve policy thinking amid widespread certainty that a rate cut is coming in September.
Yahoo Finance’s Jake Conley reports:
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Lululemon shares are getting a pounding
Lululemon (LULU) stock is taking a pounding in premarket post-earnings, as it should.
The quarter and outlook both stunk. The results are deserved, as people I talk to in retail have been super let down in Lululemon’s product assortments in recent months. It will take time to reverse the lack of must-have items, they say.
Here is the Street vibe on Lululemon this morning:
“Challenges from domestic market pressures and removal of the de minimis exemption are primary drivers of a meaningful cut to FY25 guidance (implying -4.4% lower 2H revenue and -22% lower 2H EPS at the midpoint). Acknowledgment of underperformance within the casual side of the business (40% revenue mix) is a starting point, though reigniting brand momentum in the U.S. is likely to take longer than we had previously anticipated.” — Stifel analyst Peter McGoldrick
“It’s very simple… With sales per foot 4x mall avg and margins near peak, LULU’s fundamentals will get much worse ahead. The US drives the earnings and the US is fading fast here. We believe the guide is not low enough and continue to carry estimates well below the Street/company guide. Rising competition won’t stop either, which means LULU’s EPS is permanently impaired. With lower growth and brand strength fading, a lower multiple is warranted.” — Jefferies analyst Randy Konik
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Gold stays high after reaching record price
Gold (GC=F) has maintained its upward trajectory for a third week of consecutive gains. After hitting a record high this week, the price of the precious metal has held strong, buoyed by weaker-than-expected jobs data and fears around the Fed’s independence.
Bloomberg reports:
