Update: US Equity Futures Mostly Flat Pre-Bell as Soft Jobs Data Reduces Fed Rate Hike Expectations

MT Newswires Live
2 hours ago

(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)

US equity futures were mostly flat pre-bell Monday as lower-than-expected jobs data on Friday reduced expectations for a Federal Reserve interest hike this month.

Dow Jones Industrial Average futures and S&P 500 futures were flat, and Nasdaq futures were 0.2% lower.

Total nonfarm payrolls rose by 29,000 last month, the Bureau of Labor Statistics said Friday, well below the 90,000 increase projected in a Bloomberg-compiled survey.

Markets are pricing in an 80.6% probability that the Federal Open Market Committee will leave its benchmark lending rate unchanged toward the end of this month, up from 76% on Thursday, according to the CME FedWatch tool.

Traders look forward this week to the Wednesday release of minutes of the Federal Reserve's mid-September policy session for insights on the central bank's thinking.

Expected to report their financial results this week are PepsiCo (PEP) and Delta Air Lines (DAL).

Oil prices were mixed, with front-month global benchmark North Sea Brent crude up 0.3% at $102.52 per barrel and US West Texas Intermediate crude 0.9% lower at $90.26 per barrel.

The S&P Global purchasing managers' index composite final report for September is due at 9:45 am ET, followed by ISM's services data at 10:00 am ET.

In other world markets, Japan's Nikkei closed 2.4% higher, and Hong Kong's Hang Seng ended 0.3% higher. China's Shanghai Composite was closed for a public holiday. Meanwhile, the UK's FTSE 100 was up 0.5%, and Germany's DAX index was 0.3% higher in Europe's early afternoon session.

In equities, Qualcomm (QCOM) shares rose 1% after Huawei said the two companies entered into a multi-year patent licensing agreement. Cerebras Systems (CBRS) stock was up more than 5% after OpenAI Chief Executive Sam Altman described the AI hardware firm as a "close partner." PTC (PTC) shares were more than 35% higher after Schneider Electric said it will acquire the company in an all-cash deal valued at $23.7 billion.

On the losing side, Flux (FLUX) shares were down more than 19% after Solidion Technology (STI) responded to Flux's rejection of its previously announced acquisition proposal, saying its bid is best and final.

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