Futures Pointing To Sharply Higher Open On Wall Street

The major U.S. index futures are currently pointing to a sharply higher open on Friday, with stocks poised to add to the modest gains posted in the previous session.

The futures saw a notable advance following the release of a closely watched Labor Department report showing much weaker-than-expected job growth in the month of September.

The report said non-farm payroll employment rose by 29,000 jobs in September after jumping by a downwardly revised 133,000 jobs in August, while economists had expected employment to increase by 85,000 jobs.

The Labor Department also said the unemployment rate ticked up to 4.2 percent in September from 4.1 percent in August. Economists had expected the unemployment rate to remain unchanged.

While the data may raise some concerns about the strength of the economy, the release has also contributed to a steep drop by treasury yields.

Following the slump seen in the previous session, the yield on the benchmark ten-year note is pulling back further off its highest levels in over twenty years.

The weaker than expected jobs data may also reduce the likelihood that the Federal Reserve will once again raise interest rates at its next meeting later this month.

According to CME Group’s FedWatch Tool, the chances the Fed will raise rates by another quarter point have plunged to just 13.8 percent.

A steep drop by the price of crude oil may also generate early buying interest, with U.S. crude oil futures plunging by more than 3 percent.

The sharp pullback by crude oil comes after a report from Reuters said European Union countries have discussed a French proposal to release diesel reserves in response to U.S. pressure to help cool surging fuel prices linked to the Iran war.

Following the mixed performance seen during Wednesday’s session, stocks fluctuated over the course of the trading day on Thursday. The major averages bounced back and forth across the unchanged line before eventually closing modestly higher.

The S&P 500 rose 14.91 points or 0.2 percent to 7,666.45, while the Dow inched up 20.51 points or less than a tenth of a percent to 50,926.56 and the Nasdaq crept up 10.53 points or less than a tenth of a percent to 26,871.45.

The modestly higher close on Wall Street came as treasury yields showed a significant downturn after initially extending their recent upward trend.

The yield on the benchmark ten-year note slumped into negative territory after reaching its highest levels since April 2002.

However, traders seemed reluctant to make more significant moves ahead of the release of the Labor Department’s closely watched monthly jobs report.

A day ahead of the release of the monthly jobs report, the Labor Department released a report this morning showing first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended September 26th.

The Labor Department said initial jobless claims slipped to 197,000, a decrease of 1,000 from the previous week’s revised level of 198,000.

Economists had expected jobless claims to rise to 200,000 from the 197,000 originally reported for the previous week.

A sharp increase in crude oil prices also kept buying interest relatively subdued, with U.S. crude oil futures surging by more than 3 percent.

Oil producer stocks showed a substantial move to the upside amid the spike in the price of crude oil, driving the NYSE Arca Oil Index up by 3.1 percent.

Considerable strength was also visible among networking stocks, as reflected by the 2.5 percent surge by the NYSE Arca Computer Hardware Index.

Computer hardware, semiconductor and natural gas stocks also turned in strong performances, while biotechnology, healthcare and pharmaceutical stocks showed significant moves to the downside.

Commodity, Currency Markets

Crude oil futures are plunging $3.41 to $89.46 a barrel after surging $2.45 to $92.871 a barrel on Thursday. Meanwhile, after rising $15.60 to $4,202.30 an ounce in the previous session, gold futures are jumping $50.40 to $4,252.70 an ounce.

On the currency front, the U.S. dollar is trading at 157.22 yen versus the 158.07 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1242 compared to yesterday’s $1.1241.

Asia

Asian stocks ended mixed on Friday as investors grappled with wild swings in bond and currency markets. U.S. bond yields eased back from multi-year highs and some Federal Reserve officials signaled that an October rate hike may not be urgent, helping limit regional losses to some extent.

The U.S. dollar held at a 17-month high and headed for its third straight week of gains in the face of inflationary pressures.

Gold was little changed below $4,200 an ounce but headed for a second weekly loss, pressured by dollar strength and elevated Treasury yields.

Brent crude futures fell more than 2 percent below $100 a barrel after gaining for two consecutive sessions on fears that global fuel shortages could worsen.

It was reported that Beijing is looking to preserve domestic stocks in a move that will further crimp war-constrained fuel markets.

According to a Wall Street Journal report, the U.S. is sending a third aircraft-carrier strike group and additional Marine Corps ships to the Middle East.

Citing U.S. officials, the WSJ said the ships, jet fighters, Marines and sailors will arrive in the region by the end of November, with President Donald Trump reportedly telling aides he expects to resume bombing Iran that same month.

Mainland Chinese markets remain closed for a public holiday through Wednesday of next week. Hong Kong’s Hang Seng Index saw its largest single-day decline since July 2026 before settling 2.6 percent lower at 23,972.29 due to disappointment over China’s latest stimulus measures.

Earlier this week, China announced new measures to prop up the country’s weak property market as part of efforts to keep economic growth on target rather than deliver a broad revival.

Japanese markets lost ground after data showed annual core inflation in Japan’s capital accelerated in September at its fastest pace in 10 months, bolstering the case for further interest rate hikes.

The jobless rate inched up to 2.5 percent in August from July’s 12-month low, deteriorating for the first time in five months.

The Nikkei 225 Index fell 0.9 percent to 68,309.46, retreating from a six-week high as investors locked in gains amid concerns over the outlook for inflation and interest rates. The broader Topix Index slumped 1 percent to 4,091.

Nissan Motor lost 5 percent, Toyota Motor fell 2.3 percent and Honda Motor declined 1.9 percent after six major automakers reported a 1 percent rise in U.S. sales during January-September period.

Seoul stocks swung between gains and losses before ending modestly higher after official data showed headline inflation eased back below 3 percent in September due to government price caps and lower agricultural costs.

The Kospi Index rose 0.5 percent to 7,003.74. Samsung Heavy Industries gained 1.2 percent on securing a 672.2 billion won contract to build two liquefied natural gas carriers for an unnamed Asian buyer. Hyundai Motor dropped 0.7 percent and Kia Corp eased 0.4 percent despite posting record U.S. sales for September.

Australian markets rose notably to snap a four-week slide as government bond yields eased from recent highs. The benchmark S&P/ASX 200 Index advanced 0.8 percent to 8,682.10, led by banks and mining stocks. The broader All Ordinaries Index ended 0.7 percent higher at 8,854.70.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index slid 0.9 percent to 13,680.49, extending losses for the third straight session and reaching its lowest level since September 15 after the U.S. 10-year yield touched its highest level in almost a quarter of a century.

Europe

European stocks have rebounded on Friday as wild volatility in bond and currency markets eased and Brent crude futures fell nearly 3 percent toward $99 a barrel.

The slump in oil prices came following reports that European Union countries are discussing a French proposal to release fuel and crude stockpiles to ease acute market tightness and help avert a potential U.S. diesel export ban.

Meanwhile, a flash estimate from Eurostat showed Eurozone inflation accelerated more than expected to a three-year high in September on energy prices.

Inflation rose to 3.8 percent in September, marking the highest since September 2023, from 3.2 percent in August. The rate was forecast to climb to 3.7 percent.

Excluding energy, food, alcohol and tobacco, core inflation rose marginally to 2.5 percent from 2.4 percent in the previous month.

While the German DAX Index is up by 1 percent, the French CAC 40 Index is up by 0.5 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.

In corporate news, French defense contractor Thales has moved to the upside after signing a major Air Surveillance Contract with Ireland.

Low-cost airline group Wizz Air Holdings has also moved higher after September passenger numbers rose 24.2 percent year-on-year.

Swiss private banking and financial services firm Julius Baer has also rallied after it announced a share buyback program of up to 600 million Swiss francs.

Swedish construction firm Skanska has also jumped as it bagged an additional $60 million contract from U.S.-based non-profit healthcare facilities operator Lee Health.

Car manufacturer Stellantis has also moved sharply higher a day after reconfirming its 2026 financial guidance.

JD Wetherspoon shares have also soared. The British pub operator reported an 8.6 percent rise in like-for-like sales during the first nine weeks of its new financial year.

Meanwhile, online trading and investment provider IG Group Holdings has plummeted after cutting its 2026 revenue growth forecast.

U.S. Economic News

The Labor Department released a closely watched report on Friday showing employment in the U.S. increased by much less than expected in the month of September.

The report said non-farm payroll employment rose by 29,000 jobs in September after jumping by a downwardly revised 133,000 jobs in August.

Economists had expected employment to increase by 85,000 jobs compared to the surge of 162,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate ticked up to 4.2 percent in September from 4.1 percent in August. Economists had expected the unemployment rate to remain unchanged.

At 10 am ET, the Commerce Department is scheduled to release its report on new orders for manufactured goods in the month of August. Factory orders are expected to inch up by 0.1 percent in August after climbing by 0.9 percent in July.

Dallas Federal Reserve President Lorie Logan is also due to deliver welcome remarks before the Fifth Annual Workshop on the Macroeconomic Implications of Migration at 10 am ET.