U.S. Stock Futures Await Pivotal Jobs Report

U.S. stock futures took a breather on Friday as investors eagerly awaited the release of a crucial jobs report. This report will provide insights into whether the Federal Reserve's aggressive rate-hike campaign is starting to slow down the economy.

Market Snapshot

• Dow Jones Industrial Average futures (YM00, +0.04%) gained 17 points, or 0.1%, reaching 36535.
• S&P 500 futures (ES00, +0.02%) rose by 1 point, or 0%, reaching 4590.
• Nasdaq 100 futures (NQ00, -0.06%) declined by 12 points, or 0.1%, reaching 16233.

Yesterday, the Dow Jones Industrial Average (DJIA) showed a modest increase of 63 points, or 0.17%, finishing at 36117. The S&P 500 (SPX) climbed 36 points, or 0.8%, reaching 4586, while the Nasdaq Composite (COMP) experienced a gain of 193 points, or 1.37%, reaching 14340.

According to Goldman Sachs, the S&P 500 has been trading within its narrowest range in the past two years over the last couple of weeks.

Factors Influencing the Market

The Labor Department is expected to announce that the U.S. added approximately 190,000 jobs in November. The return of striking auto workers is likely to contribute to this number. Economists surveyed by the Wall Street Journal predict that the unemployment rate will remain unchanged at 3.9%, and average hourly earnings will grow by 0.3%.

Citi economists stated that job growth has generally remained resilient this year, staying within a solid range of 150,000 to 250,000 new jobs per month, which is close to pre-pandemic levels.

The S&P 500 is nearing a 20-month high. According to Effy Elfenbein, portfolio manager of the AdvisorShares Focused Equity ETF and blogger of Crossing Wall Street, this surge in optimism is primarily due to the widespread belief that the Federal Reserve has completed its objectives.

Looking ahead, the upcoming week holds significant events such as key inflation data, Treasury auctions, and a Federal Reserve interest-rate decision.