Global Markets Steady Ahead of US Jobs Data; Tech Stocks Rally on Strong Forecasts
US futures were mixed Friday as investors awaited key jobs data. Chip and software stocks rallied on strong forecasts from Atlassian and Microchip.
US stock futures were little changed on Friday as investors turned their attention to the release of crucial jobs data that could shape the Federal Reserve's next move on interest rates. While Dow futures dipped slightly, Nasdaq futures pointed higher, driven by a surge in technology shares following upbeat earnings forecasts from several major companies.
Collaboration software maker Atlassian jumped more than 28% in premarket trading after projecting quarterly revenue above expectations. Chipmaker Microchip Technology also climbed over 8% on a similar forecast. The positive sentiment spilled over to the broader sector, lifting shares of cybersecurity firm Cloudflare, which raised its full-year revenue outlook, along with other chip and software stocks like Marvell, Micron, Palo Alto, and ServiceNow.
The moves come on the heels of a strong week for Wall Street, with the S&P 500 and Dow on track for their best weekly performance since April, and the Nasdaq poised for its strongest week since May. Stronger-than-expected results from AI-related companies have propelled major indexes to record highs, helping the Nasdaq recover from a recent pullback.
Attention now turns to the Labor Department's non-farm payrolls report for July, due at 8:30 a.m. ET. The economy is expected to have added 80,000 jobs, up from 57,000 the previous month. The unemployment rate and average annual earnings are expected to hold steady at 4.2% and 3.5%, respectively.
With the Federal Reserve, now led by Chairman Kevin Warsh, offering little forward guidance, traders are closely watching economic data. Market probabilities for a rate hold versus a hike in September are now nearly even, a shift from last week when a hike was more heavily favored. Short-term Treasury yields remain above 4%, while crude prices have inched up above $83 a barrel, adding to inflation concerns.
In other corporate news, vacation rental company Airbnb gained nearly 9% after beating second-quarter revenue estimates, helped by strong travel demand and a boost from first-time users during the FIFA World Cup. Solar stocks also rose after the White House imposed new tariffs and price floors on polysilicon, a key material in semiconductors and solar panels, in a move to support domestic production.