Futures are lower on caution ahead of key wages data From Reuters

By Johann M Cherian and Sukriti Gupta

(Reuters) – U.S. stock index futures tumbled on Friday ahead of a key jobs market report, at a time when concerns about inflation and the administration’s policies Incoming Trump has clouded the outlook for the monetary policy of the Federal Reserve.

At 7:06 am ET, Dow E-minis were down 66 points, or 0.15%, E-minis were lower 18.25 points, or 0.31% and E-minis were off 78.75 points, or 0.37%.

Elevated Treasury yields also added to investor nervousness, with those on the benchmark 10-year near an eight-month high at 4.69%.

All eyes are on the Labor Department’s nonfarm payrolls report, due at 8:30 a.m. ET, after a set of jobs data earlier in the week painted conflicting views on the employment status.

Friday’s data is expected to show that the economy added 160,000 jobs in December, with unemployment remaining at 4.2% from a month earlier.

Later in the day, investors will also evaluate the University of Michigan’s preliminary report on consumer sentiment for January.

Wall Street’s main indexes are poised to close their second straight week in the red, with the benchmark S&P 500 down nearly 3% from its record high a month ago.

Fresh inflation concerns have taken the spotlight, prompting the Fed to issue a cautious outlook on monetary easing last month as it anticipates policy changes on trade and immigration under President-elect Donald Trump. , who is expected to take office in 10 days.

Several reports on his plans, including one on imposing a national economic emergency for the rapid implementation of the tariff, have left investors wondering about its potential impact on the economy and global trade.

The index, which tracks small-cap companies focused on the country, has lost more than 8% since its record high in late November. Futures that track the index were down 0.2% on Friday.

The members of the vote on the Federal Open Market Committee have expressed the need for a measured approach to lower borrowing costs this year, the latest is the President of the Fed of St. Louis Alberto Musalem according to a report.

Traders see the central bank leaving interest rates steady for most of the first half of 2025, according to CME Group’s (NASDAQ: ) FedWatch Tool.

“With considerable uncertainty about the impact of potential trade and fiscal policy, inflation remaining firmly above target and the labor market remaining resilient, the case for further rate cuts has become harder to make ,” said Max McKechnie, global market strategist at JP Morgan Asset. Management.

Among premarket moves, chip stocks like Nvidia (NASDAQ: ) dropped 1.4% after a report said the United States could announce new export regulations as early as Friday.

Delta Air Lines (NYSE: ) rose 5.3% after forecasting higher-than-expected adjusted annual profit and US-listed TSMC shares added 1% as the chipmaker beat fourth quarter revenue estimates.

Insurance companies such as Mercury General (NYSE:) slumped 40.7%, AIG (NYSE:) dropped 3.1% and Travelers (NYSE:) slumped 4% on expectations of high industry losses from wildfires in Los Angeles.

Nike (NYSE: ) gained 1.1% after Piper Sandler upgraded the stock to “overweight” from “neutral.”

Earnings reports will resume next week and investors will be waiting to hear the possible impact that the incoming government’s policy proposals could have on businesses, along with an insight into consumer resistance and economy of the United States.