U.S. stock futures rose after payrolls increased by 29,000, below economists’ 90,000 forecast, and traders lowered the perceived probability of an October Fed rate hike to 16% from 26%. Dow, S&P 500 and Nasdaq 100 futures gained 0.83%, 0.81% and 1.13%, respectively.
Wall Street’s main indexes were set to open higher after the softer-than-expected jobs report strengthened expectations that the Federal Reserve will keep rates unchanged this month, while Treasury yields fell. Nonfarm payrolls rose by 29,000 last month after August’s increase was revised down to 133,000; economists had forecast a gain of 90,000. Traders put the probability of a 25-basis-point rate hike this month at 16%, down from 26% before the report.
At 8:47 a.m. ET, Dow E-minis were up 424 points, or 0.83%, S&P 500 E-minis rose 0.81%, and Nasdaq 100 E-minis gained 1.13%. Nvidia rose 2.2% in premarket trading, while Broadcom and Advanced Micro Devices added about 1.7% and 2.5%. Nike fell 10.4% after forecasting a steep annual revenue decline on weakness in China and announcing job cuts.
Brent crude fell below $100 a barrel, adding to positive sentiment. Fair Isaac fell 7.5% after a report that the U.S. Federal Housing Finance Agency planned to ease mortgage credit data requirements for Fannie Mae and Freddie Mac.
