Stock Futures Steady Ahead of September Jobs Report

During the regular trading hours, the Dow and Nasdaq Composite ended slightly higher, with the S&P 500 gaining 0.2% on the first trading day of October. Despite these minor increases, all three major indices are projected to incur weekly losses, with the Dow down 1.7%.

In Asia-Pacific markets on Friday, stocks were mostly lower following concerns over energy prices. Japan's Nikkei 225 fell by 0.95%, while South Korea's Kospi dropped by 1%. Hong Kong's Hang Seng Index declined by 2.48% after resuming trade post-holiday. Australia's S&P/ASX 200 opened with a modest gain of 0.35%.

Meanwhile, Treasury yields climbed to multiyear highs before retreating, with the 10-year Treasury note yield reaching 5.344%, the highest since 2002. The yield on the 30-year Treasury bond also hit a 24-year high.

Oil prices increased following a report from The Wall Street Journal, stating that the U.S. is deploying a third aircraft carrier strike group to the Middle East. Brent crude futures rose by more than 4% to close at $102.31 per barrel, while U.S. West Texas Intermediate futures increased by 2.7% to $92.87 a barrel.

Attention on Friday will focus on the nonfarm payrolls report, with the Dow Jones consensus estimating job growth of 84,000 and the unemployment rate holding steady at 4.1%. This report is significant as traders reassess the Federal Reserve's next steps. Fed funds futures indicate a 72% chance the central bank will maintain its current policy in October.

Christopher Hodge, a chief U.S. economist at Natixis CIB Americas, mentioned that a strong jobs report may not prompt an interest rate hike given the current view of a stable labor market. Hodge expects payroll growth, influenced by manufacturing and construction sectors, to slow from August's pace but still achieve solid gains, estimating an increase of 60,000 jobs, resulting in a three-month moving average of 81,000.

In related news, Japan's Nikkei 225 and South Korea's Kospi opened lower on Friday amid rising oil prices due to U.S.-Iran tensions, impacting investor sentiment across Asia.

Vylor, a seeds and genetics company, was added to the S&P 500 after spinning off from Corteva. Vylor replaced Corteva, which will join the S&P MidCap 400. Twilio is set to join the S&P 500, replacing Warner Bros. Discovery on October 6, 2026, following Paramount's upcoming acquisition of Warner Bros. Discovery.

In corporate news, Nike's shares fell over 6% in extended trading after the company reported lower-than-expected sales in the fiscal first quarter, earning 48 cents per share against a consensus estimate of 43 cents per share. Nike anticipates a decline in revenue by a high-single digit percentage for fiscal 2027 and announced plans for a restructuring that will include layoffs starting in 2027.