By Investing.com — U.S. stock futures rose Friday after the release of a stronger than expected jobs report, which lessened the likelihood of a recession in the world’s largest economy.
By 08:45 ET (12:45 GMT), the Dow Futures contract was up 225 points, or 0.5%, S&P 500 Futures traded 45 points, or 0.8%, higher and Nasdaq 100 Futures climbed 233 points, or 1.2%.
Nonfarm payrolls impress
US employment growth was far stronger than expected in September, with nonfarm payrolls rising by 254,000 jobs last month, increasing from an upwardly-revised mark of 159,000 in August. Economists had anticipated a reading of 147,000.
The jobless rate also slowed to 4.1% from the prior month’s 4.2%.
While this healthy jobs data potentially dens the chances of another jumbo interest rate reduction by the Federal Reserve at its last two meetings of the year, Fed Chair Jerome Powell had already guided towards more traditional 25 basis-point cuts in a speech earlier this week.
Affitionally, the data so far this week – job openings, ADP private payrolls and the weekly initial jobless claims – had already pointed to a reasonably healthy labor market.
Middle East turmoil hit risk sentiment
The main indices ended with losses Thursday, with the blue chip Dow Jones Industrial Average dropping 185 points, or 0.4%, while the broad-based S&P 500 fell 0.2% and the tech heavy Nasdaq Composite just slipped into negative territory.
All three major averages are on pace to snap a three-week win streak.
The volatile situation in the Middle East has weighed on risk sentiment this week, and investors are watching for fresh developments given Israel has vowed retribution for the aerial bombardment from Iran earlier in the week.
EU to adopt tariffs on China-made EVs
In the corporate sector, the EV sector is likely to be in the spotlight after the European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles.
The decision comes after months of deliberations, with the EU first announcing plans for higher tariffs on Chinese electric vehicle imports in June.
Elsewhere, the strike by US dockworkers looks set to end after their union and the group representing large ocean shipping firms reached an agreement, which is expected to result in a wage hike of roughly 62% over six years.
Crude on track for hefty weekly gains
Oil prices rose Friday, on course for their largest weekly gain in over a year on the increased risk of a growing conflict in the Middle East.
By 08:45 ET, the Brent contract gained 0.5% to $77.97 per barrel, while U.S. crude futures (WTI) traded 0.4% higher at $73.97 a barrel.
Brent crude futures were set to gain around 9% for the week – its steepest since February 2023, while U.S. crude futures’ 9% weekly rise would be the largest since March last year.