Indices in Focus: Investors Hold Their Breath Before US Job Data

The futures on Wall Street were largely unchanged on Friday, as investors cautiously looked towards the eagerly anticipated monthly jobs report, considered crucial for the future interest rate path of the Federal Reserve. In November, job growth in the U.S. likely increased significantly after previously being dampened by hurricanes and strikes. Nevertheless, it is expected that this development will not constitute a substantial change in the relaxed labor market conditions that would prompt the Fed to implement another rate cut this month. According to Max McKechnie, global market strategist at J.P. Morgan Asset Management, the Fed's decision for December remains open and fiercely contested. However, strong labor market data could undoubtedly lead to a revision of interest rate expectations for the next year. Economists expect the number of non-farm payroll jobs created in November to have risen by 200,000, while the unemployment rate is expected to climb to 4.2%. At the same time, according to the CME FedWatch Tool, the probability of a rate cut by 25 basis points at the Fed meeting later this month is nearly 67%. Shortly after markets open on Friday, a preliminary survey on American consumer confidence from the University of Michigan is also expected. Additionally, four Fed officials will make public appearances before the so-called Fed's blackout period begins ahead of the meeting on December 17-18. At the end of the recent session, U.S. stocks declined, with UnitedHealth and tech stocks in particular giving up some of the week's gains. Despite this correction, the S&P 500 and the Nasdaq were poised for their third consecutive weekly gain. The Dow Jones, on the other hand, prepared for slight losses. Sustained by a continued rise in tech stocks benefiting from the artificial intelligence hype, the indices remain near their record highs. Donald Trump's election victory in November also contributed to the recent market dynamics. Analysts see potential support for corporate profits in his policy approaches, such as tax cuts and relaxed regulation. At 05:00 ET, Dow E-minis were down 15 points or 0.03%, S&P 500 E-minis were down 3.5 points or 0.06%, and Nasdaq 100 E-minis were down 1.5 points or 0.01%. Among the pre-market gainers, Ulta Beauty rose 11.4% after the cosmetics retailer raised its annual forecast. Lululemon Athletica also gained 8.2%, thanks to increased full-year forecasts for its sportswear.