US stock futures erased early gains to briefly touch session lows on Friday after the US added 162,000 jobs in August, raising concerns that the Federal Reserve may hike interest rates soon.
Futures contracts tied to the S&P 500 Index slipped 0.3% as of 8:46 a.m. in New York, while Nasdaq 100 Index futures rose less than 0.1%. Both were up ahead of the report. The S&P 500 is 0.5% higher this week, while the Nasdaq 100 is up 0.2%. US markets are closed on Monday for the Labor Day holiday.
Stock futures in the US gave up initial gains after job growth beat forecasts in August and the unemployment rate held steady, suggesting the labor market has more momentum than previously thought. The unemployment rate remained at 4.1%, according to Bureau of Labor Statistics data.
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Wall Street’s chief fear gauge — the Cboe Volatility Index remained around 14 following the jobs report — a level that doesn’t typically signal market stress, and was more than 20% below its one-year average.
The decline in stock futures Friday follows a Thursday session when the S&P 500 notched its best day in a month as investors weighed remarks from Fed Governor Christopher Waller, who offered optimism that inflation is showing some signs of slowing.
The S&P 500 has gone 26 sessions without a drop of at least 1% through Thursday, a streak of tranquility last seen in mid-May when investors boosted bets that the US economy and earnings growth would remain robust as data showed inflation ebbing.
Among single-stock movers, Lululemon Athletica Inc. tumbled 20% premarket after the athletic-apparel maker cut its net revenue forecast for the full year that fell short of Wall Street estimates. Meantime, Adobe Inc. fell 4.5% after the software maker announced that Anil Chakravarthy will become chief executive officer on Dec. 1.
Tesla Inc. is underperforming its Magnificent Seven peers, falling 2.9% premarket after its much-anticipated Cybercab launch, which resulted in little splash or detail as the two-seat vehicle was added to the company’s robotaxi fleet. And Planet Labs jumped 11% ahead of the opening after the satellite-imaging service firm lifted the low end of its full-year revenue outlook for 2027.
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