US stock futures ticked up Friday morning, with the Nasdaq leading on a 0.4% gain and the S&P 500 futures hitting fresh record highs.
The Dow added only modestly. Traders are watching the August jobs report for confirmation that the labor market is cooling, a backdrop that has all but guaranteed a quarter-point Fed rate cut later this month.
Odds of the move are pegged at more than 99%. Strong results from Broadcom, powered by AI revenue growth, gave tech stocks an extra lift.
5 things to know before Wall Street opens
1. Broadcom jumped more than 8% in pre-market trading Friday after topping earnings forecasts and announcing a $10 billion AI chip order.
Edwards Lifesciences, Nike, and Lam Research also traded higher, showing strength across healthcare and tech. On the downside, Revvity, Moody’s, and Albemarle slipped on mixed sector news.
The early action points to ongoing enthusiasm for AI-linked tech, tempered by caution in other corners of the market.
2. The S&P 500 and Nasdaq are trading close to all-time highs, underpinned by strong earnings and steady economic data.
The S&P remains above key moving averages, signaling resilience despite recent pullbacks. Technical gauges like RSI point to overbought conditions, raising the prospect of short-term consolidation.
Still, the broader uptrend holds as investors look to the August jobs report for the next market catalyst.
3. Traders are focused on the August US jobs report, due today. Forecasts point to slower hiring, a small uptick in unemployment, and easing wage growth.
The numbers will help set expectations for Federal Reserve policy. Investors already see a near-certain rate cut in September, but the release could shift sentiment and spark volatility.
4. Broadcom’s fiscal Q3 earnings drew strong reviews, with Bank of America, JPMorgan, and Morgan Stanley all reaffirming buy ratings and lifting price targets.
Analysts pointed to record revenues, a $110 billion order backlog, and a growing base of AI customers as signs of lasting demand.
The outlook underscores Broadcom’s role in the AI chip race, with potential to take share from rivals including Nvidia. Shares traded higher in pre-market, reflecting investor confidence in the company’s growth track.
5. European equities edged higher overnight, offering Wall Street a modest lift as investors waited on the US payrolls report. Germany’s DAX gained on strength in industrial shares while London’s FTSE also closed in the green.
In commodities, gold slipped after a two-day climb, with traders citing some profit-taking, while crude futures gave back early gains on fresh doubts about demand from China.
The cross-currents set the tone for a cautious start in New York. Traders said geopolitics and inflation data still hang over capital flows, but the jobs numbers due later Friday remain the main swing factor for sentiment.
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