Traders are cautiously optimistic ahead of the all-important payrolls report, with the index futures narrowly mixed in early Friday. The suspension of the Longshoremen’s strike removes one of the overhangs even as the Middle East tensions rage unabated. The September job gains could have a big impact on the near-term direction of the market.

“Payroll data will be closely watched as the sentiment is now that the Fed has become less focused on inflation and more on employment,” said fund manager Louis Navellier. A BofA note highlighted that the S&P 500 futures have been more reactive to non-farm payroll data than any other economic data in recent years, a screenshot of the note shared by a financial writer on X showed.

In premarket trading on Friday, the SPDR S&P 500 ETF Trust (NYSE:SPY) gained 0.16% to $568.75 and the Invesco QQQ ETF (NASDAQ:QQQ) moved 0.32% higher to $483.14, according to Benzinga Pro data.

Cues From Last Session:

U.S. stocks showed nervousness throughout Thursday’s session before closing lower, with geopolitical tensions, the dockworkers’ strike and mixed economic data weighing down on sentiment. While a bigger-than-expected increase in jobless claims stirred anxiety about the monthly jobs data, the Institute for Supply Management’s stronger-than-expected service sector purchasing managers’ index tempered expectations concerning a bigger cut.

The 30-stock Dow Jones Industrial Average underperformed as it settled down 0.44% at a one-week low.

Insights From Analysts:

Adams sees the Fed funds rate to be in the range of 3%-3.25% by the end of 2025. That said, the economist does not rule out a faster pace of rate cuts if the economy weakens materially, or a slower rate cut if the large deficit or wars in oil-exporting regions cause inflation to rebound.

Navellier weighed in on the near-term trajectory of the market in a note sent to clients on Thursday. “Funds flows into equities are likely to remain positive, at least until there is a sustained pullback, which hasn’t happened since ’22,” he said.

 “AI adoption remains one of the fastest-growing new technologies ever and continues to promise big gains in productivity, though the timing of meaningful cash flow gains still remains uncertain,” he added.

See Also: How To Trade Futures

Upcoming Economic Data:

Stocks In Focus:

Commodities, Bonds And Global Equity Markets:

Crude oil futures added to their 5%+ gains from Thursday and traded above $74.50, and gold futures traded flat under their all-time high. Bitcoin (CRYPTO: BTC) climbed over 1% ahead of the jobs data. The yield on the 10-year Treasury note remained unchanged at 3.85%.

The Asian markets were mixed, with Japan ending modestly higher, and Hong Kong and a few other majors advancing. On the other hand, the Indian, Australian, Malaysian, Indonesian, and Taiwanese markets retreated. The Chinese market continued to remain closed for a weeklong holiday.

In Europe, sentiment is modestly positive in early trading, although the U.K. market is retreating.

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