US pre-open: Futures steady as rate cut hopes rise on weak jobs data

(Sharecast News) - Wall Street futures were little changed ahead of the bell on Thursday as investors grew more confident about a December rate cut following weaker‑than‑expected private payrolls data. As of 1225 GMT, Dow Jones and S&P 500 futures were up 0.11% and 0.04%, respectively, while Nasdaq-100 futures had the index opening 0.02% lower.

The Dow closed 408.44 points higher on Wednesday, extending gains recorded in the previous session, as ADP's figures pointed to softness in the labour market, fuelling expectations that the Federal Reserve could move to ease policy at its 10 December meeting. According to the CME FedWatch tool, markets have now priced in an 89% chance of a cut.

Elsewhere, the artificial intelligence trade remained under pressure, with the tech sector the weakest performer among S&P 500 groups on Wednesday, as losses in Microsoft, Nvidia and Broadcom weighing on sentiment and highlighting ongoing concerns around valuations in the space.

Investors were also monitoring developments on US tariff policy after Treasury Secretary Scott Bessent told the New York Times that the White House could revive its tariff agenda under provisions of the 1962 Trade Act, even if the current structure fails to secure approval in a pending Supreme Court case.

Saxo's Neil Wilson said: "Bad news is good news for stocks - Wall Street stocks rose as ADP reported private payrolls declined by 32k last month, surprising to the downside and reinforcing the view that the Fed is a slam dunk to cut rates this month. A slowdown in orders in the ISM services PMI was also seen as boosting the chances for further easing when the Fed convenes next week."

On the macro front, Challenger job cuts data will be published at 1230 GMT, while weekly jobless claims were slated for release at 1330 GMT, and September factory orders will follow at 1500 GMT.

In the corporate space, Dollar General will report earnings prior to the open, while Hewlett Packard will publish its latest quarterly figures after the close.



Reporting by Iain Gilbert at Sharecast.com