Stock index futures muted ahead of more jobs data

Stock index futures traded higher on Thursday ahead of more labor data and with the Jackson Hole Economic Symposium set to begin.

S&P 500 futures (SPX) +0.2%, Nasdaq 100 futures (US100:IND) +0.3% and Dow futures (INDU) were unchanged.

The 10-year Treasury yield (US10Y) was up 3 basis points to 3.84%. The 2-year yield (US2Y) rose 3 basis points to 3.98%.

Major equity indexes ended higher Wednesday following minutes from the Federal Reserve’s July meeting that indicated policymakers were on course to begin cutting interest rates in a matter of weeks.

“The gains happened despite some negative revisions to U.S. payrolls, but given the widespread expectations that they’d be revised down anyway, the news didn’t lead to a big reaction among risk assets,” Deutsche Bank’s Henry Allen said.

The payrolls benchmark was revised down 818K, or by 0.5%, for March 2024, the Bureau of Labor Statistics said on Wednesday.

“In response to the payroll revisions and Fed minutes, the most obvious market reaction was that investors dialed up their expectations for Fed rate cuts,” Allen added.

Traders will now turn their attention to the initial jobless claims data, which is expected to land before the bell. Economists expect a rise to 232K.

“U.S. initial jobless claims will continue to receive attention as the aftermath of the rogue US employment report lingers, somewhat. The data should confirm that there is unlikely to be a meaningful increase in fear of unemployment, especially among middle-income consumers,” UBS’ Paul Donovan said.

Investors are now keenly waiting for Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday. The symposium kicks off today.

Among other economic indicators, the July Chicago Fed national activity index and August PMI composite flash are slated to come on Thursday. The latter is expected to fall to 53.5.

The Fed Balance Sheet is also expected to come later in the day.