Stock futures were mixed Friday morning as investors eagerly awaited the September jobs report for further clues about the Federal Reserve’s tightening campaign.
S&P 500 futures were essentially flat, while Nasdaq 100 futures fell 0.3%. Dow Jones Industrial Average futures rose 0.2%.
Shares of Advanced Micro Devices fell in trading overnight after the chipmaker warned that its third-quarter revenue would be lower than expected. Shares of Levi Strauss slid following a reduction in guidance.
Major averages closed lower in Thursday’s trading, but are on course to cap their best week since June 24 and end around 4% higher. The Dow Jones fell 346.93 points, or 1.15%, to 29,926.94, while the S&P 500 and Nasdaq Composite lost 1.02% and 0.68% respectively on Thursday.
All major S&P sectors ended the session in negative territory, with the exception of energy. The sector rose 1.8% as oil prices rose and is poised to end the week up 14.7%.
Thursday’s drop comes as investors remain nervous ahead of the September jobs report due out on Friday. The results could offer greater certainty in the Fed’s tightening cycle, with a strong job market or an upside surprise signaling that the Fed may need a tougher stance to slow the economy and control the rise in prices. Economists polled by Dow Jones expect the data to show a 275,000 rise in nonfarm payrolls and unemployment to 3.7%.
“The environment is ripe for a crisis and if the Fed maintains its hawkish communication, I think we are very likely going to have something broken in the financial markets,” said Scott Minerd, Guggenheim’s global chief investment officer on “Closing Bell: Overtime” from CNBC. ” Thursday.
Minerd said the pace of tightening was starting to create fissures in financial markets and could force a pivot from the Fed in the coming weeks.
“All the signs are there,” he said. “I can’t tell you exactly what will cause it, but the environment is ripe and when the Fed pivots, they’re not going to announce it in advance, they’re not going to ring a bell.”