US Stocks-US stock futures rise ahead of jobs data; chip, software shares rally

The Labor Department will release the nonfarm payrolls figures for July at 8:30 a.m. ET, with the economy expected to have added 80,000 jobs, up from the 57,000 the previous month. The unemployment rate and average annual earnings are expected to stay steady from the month before at 4.2% and 3.5%, respectively. "A stronger labor market would add to the notion that the economy remains resilient which could support the case for a rate hike if inflation were to prove stubborn," Erik Liem, rates strategist at Commerzbank, said in a note. The U.S. Federal Reserve under new Chair Kevin Warsh has offered investors little information on forward guidance regarding monetary policy, sharpening the focus on economic data and commentary from policymakers. The probability of no change versus an interest-rate hike in September is now closer to even, the CME FedWatch Tool showed. Last week, traders were pricing in a 37% chance for rates staying unchanged versus 63% for a rate increase. Short-term Treasury yields US2UYT=RR, a reflection of short-term interest rate expectations, hovered above 4% as crude prices inched up above $83 a barrel, adding to inflation concerns. Tensions flared again after Yemen's Iran-aligned Houthis attacked Saudi Arabia, while a report said Iran is reviewing a preliminary bill that would bar U.S., Israeli and other "hostile" vessels from transiting the Strait of Hormuz and would impose fines of up to 20% of a ship's cargo value for violations. Vacation rental company Airbnb ABNB.O gained 7.5% after beating second-quarter revenue estimates, helped by strong global demand for travel and a boost from first-time users during the FIFA World Cup. Wall Street futures edged higher on Friday as investors awaited a key U.S. employment report that is expected to influence the course of monetary policy, while strong forecasts from Microchip Technology and Atlassian buoyed sentiment. Collaboration software maker Atlassian TEAM.O jumped 31.6% in premarket trading while chip company Microchip Tech MCHP.O advanced 8.9% after both forecast quarterly revenue above estimates. The main U.S. indexes were headed for strong weekly gains, with the S&P 500 and the Dow on track for their best week since April and the Nasdaq set for its biggest advance since May, if gains hold. Better-than-expected results from AI-related companies this earnings season have propelled the Dow and the S&P 500 to fresh record highs, while helping the Nasdaq recover from a pullback that had briefly pushed it nearly 10% below its previous peak. Cybersecurity company Cloudflare NET.N gained 16.1% after raising its full-year revenue forecast above estimates. The results also lifted the broader sectors, with chip stocks Marvell MRVL.O and Micron MU.O up 2.4% and 1%, respectively. Software stocks also rose; Palo Alto PANW.O gained 2.2% and ServiceNow NOW.N added 3.7%. In a move to support domestic production, the White House imposed a series of price floors and a 15% tariff on products made from polysilicon, the raw material used in semiconductors and solar panels that is primarily produced by China. Solar stocks also gained. First Solar FSLR.O was up 6.1% and SolarEdge SEDG.O climbed 1.5% following U.S. President Donald Trump's trade actions to challenge Beijing's polysilicon monopoly. At 06:56 a.m. ET, Dow E-minis YMcv1 rose 27 points, or 0.05%, S&P 500 E-minis EScv1 gained 11 points, or 0.14%, and Nasdaq 100 E-minis NQcv1 were up 115 points, or 0.39%.

US Stocks-US stock futures rise ahead of jobs data; chip, software shares rally

Jobs data in focus

Airbnb rises on revenue beat

Futures rise and tech shares rally

Sector gains in chips, software and solar

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