Dow Futures Rise Slightly as Investors Await US Payrolls Report

US stock futures traded near flat on Thursday, September 3, after Wall Street ended a three-day losing streak. Dow futures gained about 0.17%, while S&P 500 futures rose 0.05%. Nasdaq 100 futures slipped 0.04% in early trading.

Treasury yields moved lower after a sharp rise earlier this week. Meanwhile, investors tracked oil prices, technology earnings and upcoming US employment data. Friday’s nonfarm payrolls report will provide the next major reading on the labor market.

Dow, S&P 500 and Nasdaq End Three-Day Losing Streak

The Dow Jones Industrial Average gained 295.07 points, or 0.56%, on Wednesday to close at 53,061.95. The S&P 500 rose 0.46% to 7,666.60, while the Nasdaq Composite added 0.45% to 26,217.83. All three indexes ended three straight sessions of losses.

Small-cap stocks also posted stronger gains. The Russell 2000 climbed 1.1%. Nvidia rose 3.2%, while Micron gained 2.4% and Qualcomm added 2%. Dell shares jumped 15.8% after the company raised its full-year revenue and profit forecasts. Materials recorded the largest gain among S&P 500 sectors, while real estate finished lower.

Treasury Yields Ease From Multi-Year Highs

The US 10-year Treasury yield reached 4.818% on Wednesday, its highest level since November 2023. It later eased to 4.794%. By Thursday, the benchmark yield had fallen further as government bonds recovered from their recent selloff.

Earlier Thursday, the 10-year yield traded around 4.766%, down about three basis points. Markets also priced roughly a 60% probability of a Federal Reserve interest rate increase in September, compared with less than 40% a week earlier.

New York Federal Reserve President John Williams said this week that higher long-term yields reflected strength in the US economy rather than increased inflation fears. He also said the Fed would continue reviewing incoming economic data before its September policy decision.

US Jobs Data Takes Center Stage Before Fed Meeting

Labor market data has moved into view ahead of Friday’s nonfarm payrolls report. ADP data showed that US private employers added 38,000 jobs in August, below market forecasts. Investors will compare that figure with Friday’s government employment report.

Thursday’s economic calendar also includes international trade, second-quarter productivity, labor costs and services-sector data. Federal Reserve Governor Christopher Waller is also scheduled to speak. His remarks come as markets assess the outlook for borrowing costs before the Fed’s September meeting.

Broadcom Falls While Snowflake Jumps in Premarket Trading

Technology stocks recorded large premarket moves following quarterly results. Broadcom shares fell about 2.3% after its fourth-quarter revenue forecast came below Wall Street expectations. The company reported earnings after Wednesday’s closing bell.

Snowflake shares gained more than 23% before Thursday’s opening bell. The cloud software company raised its fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion. Second-quarter product revenue increased 37% from a year earlier.

Oil also stayed near recent highs following renewed US-Iran military action. Brent crude moved in a narrow range Thursday after settling at $95.63 a barrel on Wednesday. West Texas Intermediate had settled at $91.01. 

The US-Iran conflict, Treasury yields, employment figures and corporate earnings continue to provide the main market data points ahead of Thursday’s Wall Street session.

Also Read: Wall Street Futures Drop as Oil Nears USD 95, Fed Rate Hike Bets Rise