US stock futures rose early Friday as oil prices fell and investors awaited September’s jobs report. The gains followed a higher close on Thursday, although all three major indexes remained on course for weekly losses after a sharp rise in Treasury yields.
S&P 500 futures gained 0.5%, while Dow Jones Industrial Average futures rose 299 points, or 0.6%. Nasdaq-100 futures advanced 0.7%. Treasury yields changed little in early trading after moving lower from Thursday’s highs.
Meanwhile, oil prices declined following reports that European Union members were discussing a French proposal to release additional diesel reserves. The Trump administration had urged European allies to release supplies immediately to ease a global shortage.
Brent crude futures for December delivery traded around USD 99.78 a barrel, down 2.5%. U.S. West Texas Intermediate futures for November delivery fell nearly 3.8% to USD 89.40. Both benchmarks extended losses during the morning session.
The decline came as investors tracked energy costs alongside borrowing rates. Rising oil prices had contributed to inflation concerns, while the recent bond selloff added pressure to stock markets heading into October.
Economists surveyed by Dow Jones expected September payrolls to rise by 84,000. They forecast an unchanged unemployment rate of 4.1%. Traders were awaiting the figures for further evidence about the strength of the U.S. labor market.
Before the release, federal funds futures indicated a 72% chance that the Federal Reserve would leave rates unchanged in October. The central bank raised interest rates in September for the first time in three years to address inflation above its target.
Christopher Hodge, chief US economist at Natixis CIB Americas, expected payroll growth of 60,000. That outcome would bring the three-month average gain to 81,000 jobs. He also expected manufacturing and construction hiring to benefit from data center development.
Hodge said a strong report alone would probably be insufficient to prompt an October increase, given signs of a stable labor market. Investors will also review minutes from September’s Fed meeting on Wednesday for details about policymakers’ rate discussions.
The 10-year Treasury yield reached 5.344% on Thursday, its highest level since 2002, before falling as low as 5.21%. The 30-year yield also reached a 24-year high before retreating. The Dow remained down 1.7% for the week.
Higher yields increase borrowing costs and give investors more alternatives to stocks. Chuck Carlson, chief executive at Horizon Investment Services, described interest rates as the market’s ‘biggest headwind.’ He said stocks would struggle to achieve a meaningful rally without relief from rising rates.
Even so, the S&P 500 entered October with a gain of about 12% for 2026 and stood less than 2% below its August record. The Nasdaq Composite had gained more than 15% during the year.
PepsiCo and Delta Air Lines are among companies scheduled to report next week, ahead of major banks the following week. LSEG IBES data pointed to third-quarter earnings growth exceeding 30% for S&P 500 companies compared with a year earlier.
Morgan Stanley named Nvidia its top semiconductor stock on Friday, October 2. Analyst Joseph Moore maintained an overweight rating and a USD 300 price target, citing demand from customers beyond the largest cloud companies and leading AI developers.
Separately, US equity funds attracted USD 20.6 billion during the week through September 30, according to LSEG Lipper. This marked their second consecutive weekly inflow, following USD 37.49 billion the previous week. Large-cap funds received USD 19.33 billion.
Investors also added USD 1.01 billion to multi-cap funds, while small-cap funds drew another USD 223 million.
However, sector funds recorded USD 4.1 billion in withdrawals, including USD 3.79 billion from technology funds. US bond funds attracted USD 6.45 billion, their largest weekly inflow in three weeks, while money market funds recorded USD 41.36 billion in outflows.
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