US stocks set for higher open as surprise payrolls fall cools rate-hike bets

Wall Street's main indexes were set to open higher on Friday after data showed the U.S. economy unexpectedly shed jobs last month, raising doubts about a September interest-rate hike by the Federal Reserve.

A Labor Department report showed nonfarm payrolls fell 23,000 in July, far below the 80,000 job additions that economists polled by Reuters were expecting.

Unemployment stood at 4.1% in July, easing from 4.2% in June. Average earnings on an annual basis rose 3.2% in July, compared with the 3.5% economists expected.

"Even with a negative job print, the job market remains healthy. But it gives the Fed some room to pause in September," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

"It has seemed like the Fed is pressing more on the inflation front, but today's numbers may reframe that conversation and put the labor side of the mandate in focus."