(Reuters) – U.S. stock index futures were higher on Friday ahead of a reading that could show job growth likely slowed in August, wrapping up a data-packed week for any fresh clues on the Federal Reserve’s monetary policy trajectory.
The Labor Department’s closely watched nonfarm payrolls report for August is due at 8:30 a.m. ET.
The unemployment rate is forecast to remain unchanged at 3.5%, while non-farm payrolls is seen at 170,000 additions last month, down from 187,000 in July.
“There have been indicators that the U.S. jobs market is finally starting to lose some of its tightness, and if the NFP print confirms this trend, it will be one less thing for the FOMC to worry,” said Tim Waterer, chief market analyst at KCM Trade.
The Nasdaq index ended higher on Thursday after a key inflation reading matched estimates, supporting hopes of the Fed hitting a pause on its market-punishing tightening campaign.
Other data points are also on the radar for the day, with the S&P Global Manufacturing Final PMI due at 9:45 a.m. ET and the ISM Manufacturing PMI due at 10 a.m. ET. Both readings are for August.
Money markets see an 89% chance of a rate-hike pause in the September policy meeting and a 56% chance of a pause in the November meeting, according to the CME FedWatch Tool.
Broadcom fell 4.4% premarket as the chipmaker projected current-quarter revenue below expectations on softening enterprise demand.
At 5:38 a.m. ET, Dow e-minis were up 123 points, or 0.35%, S&P 500 e-minis were up 13.25 points, or 0.29%, and Nasdaq 100 e-minis were up 23.5 points, or 0.15%.
Dell Technologies jumped 9.4% after the personal computer maker raised its annual forecast for revenue and profit as it benefits from the artificial intelligence boom.
(Reporting by Shristi Achar A in Bengaluru)
