Dow, S&P 500, Nasdaq Futures Rise Ahead Of Key Jobs Report: NKE, NFLX, BABA, XRPN Stocks In Focus

• Signs of a strengthening labor market will likely give the Fed more room to hike interest rates.

• However, according to data from the CME FedWatch tool, the probability that the Fed will hike interest rates is 24.9%, down from 68.6% a week ago.

• Nike shares dropped nearly 9% in the overnight session late Thursday after the company posted a softer full-year forecast and said its turnaround efforts would take time.

U.S. stock futures traded higher in the overnight session late Thursday, even as traders look ahead to the release of September’s jobs report, which is likely to provide further cues on the Federal Reserve’s next policy move.

As of 10:18 p.m. EDT, Dow futures were up 0.09%, the S&P 500 futures had gained 0.18%, while Nasdaq-100 futures rose 0.36%.

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On Thursday, all three benchmark indexes closed higher as the new quarter began. The Dow Jones Industrial Average rose 0.04%, the S&P 500 gained 0.19%, and the Nasdaq Composite climbed 0.04% at close.

Key US Market Drivers

U.S. markets will be tuned into September’s nonfarm payrolls report expected on Friday. Per the Dow Jones consensus, experts expect job growth of 84,000 and unemployment to remain steady at 4.1%.

Friday’s jobs report comes as recent inflation data continues to point to persistent price pressures. August PCE data released Wednesday showed inflation easing slightly but remaining above the Fed’s 2% target. Signs of a strengthening labor market will likely give the Fed more room to hike interest rates.

However, according to data from the CME FedWatch tool, the probability that the Fed will hike interest rates is 24.9%, down from 68.6% a week ago.

Christopher Hodge, chief U.S. economist at Natixis CIB Americas, told CNBC that given the current view of a stable labor market, even a strong jobs report would likely be insufficient on its own to prompt the Fed to raise rates in October. He expects continued growth in manufacturing and construction, driven in part by the ongoing data-center buildout.

“We expect payrolls to slow from the torrid pace from August, but still to register solid gains. We expect payrolls to increase by 60k, which if realized, would bring the three-month moving average of gains to 81k,” Hodge reportedly said.

Meanwhile, on Thursday, Dallas Fed President Lorie Logan said rates may need to rise by at least 50 basis points to bring inflation under control, while Fed Governor Lisa Cook flagged AI-driven inflation as a significant risk for 2027.