U.S. stock index futures ticked up Thursday night after a much weaker-than-expected June employment report appeared to reduce the probability that the Federal Reserve will need to hike interest rates soon.
By 22:42 ET (02:42 GMT), S&P 500 Futures had inched 0.3% higher to 7,553.0 points, Nasdaq 100 Futures were up 0.6% at 29,720.75 points, and Dow Jones Futures traded 0.3% higher at 53,334.0 points. Traders will face a short session window, with U.S. markets closed on Friday for the July 4 holiday.
The Labor Department reported the U.S. economy added 57,000 jobs in June, a notably smaller gain than the 110,000 economists had expected. The unemployment rate registered at 4.2%, marginally below forecasts of 4.3%.
Market participants interpreted the softer payrolls data as reinforcing the view that the Fed can afford to hold borrowing costs steady in the near term, paring back expectations of another rate increase this year. ING analysts commented on the data, saying: "Today’s number suggests that this was not necessarily the start of a new trend and takes some out of the wind of the sails for the call for imminent rate hikes." They added, "A soft July CPI report should boost the case for a prolonged Fed pause."
In regular session trade on Thursday, the Dow Jones Industrial Average climbed more than 1% to close at a record high. The S&P 500 finished essentially flat, while the NASDAQ Composite slipped 0.8% as semiconductor shares extended recent losses.
Individual stock moves illustrated the uneven market response. Apple (NASDAQ:AAPL) rose 5% following a Nikkei report that said the company plans to introduce at least five new iPhone models between the second half of 2026 and the first half of 2027. By contrast, Tesla Inc (NASDAQ:TSLA) shares fell nearly 8% despite reporting better-than-expected second-quarter deliveries. The decline in Tesla shares occurred amid broader investor caution toward high-growth technology names and an ongoing shift away from semiconductor stocks.
The combination of weaker-than-anticipated labor-market data and mixed results across major equities left futures modestly higher, with the market looking to July data points for further clarification on inflation and the Fed’s path. With the holiday-shortened trading calendar, participants will be monitoring upcoming economic releases closely once markets reopen in force.
Key takeaways
- June payrolls weak - U.S. employers added 57,000 jobs versus expectations of 110,000, and the unemployment rate was 4.2%.
- Futures climbed modestly - S&P 500 Futures +0.3% to 7,553.0, Nasdaq 100 Futures +0.6% to 29,720.75, Dow Futures +0.3% to 53,334.0.
- Divergent stock performance - Dow closed at a record, S&P 500 flat, NASDAQ Composite down 0.8%; AAPL surged 5%, TSLA fell nearly 8%.
Market impact areas
- Monetary policy expectations - Softer payrolls have reduced immediate rate-hike probabilities.
- Technology and semiconductors - Semiconductor weakness pressured the NASDAQ Composite and influenced investor sentiment for growth names.
- Large-cap equities - Moves in Apple and Tesla drove notable divergence within major indices.