US Stock Futures Dip Ahead of Key Jobs Report

U.S. stock futures retreated on Friday, January 10, 2025, as investors awaited the release of the crucial December jobs report, which could influence the Federal Reserve‘s interest rate decisions. Dow Jones Industrial Average futures fell 0.2%, while S&P 500 futures and Nasdaq 100 futures dropped 0.2% and 0.3%, respectively, signaling a cautious market ahead of the data.

The jobs report, expected at 8:30 a.m. ET, is anticipated to show a cooling labor market, with economists forecasting 165,000 jobs added in December, down from 227,000 in November. The unemployment rate is projected to remain steady at 4.2%. The report comes amid mixed signals from the labor market, including a drop in weekly jobless claims to an eight-month low but slower private sector payroll growth.

Federal Reserve Chair Jerome Powell and other officials have indicated a cautious approach to further rate cuts, with markets pricing in only a 5% chance of a reduction at the January meeting. Most bets are on no easing before June. Kansas City Federal Reserve President Jeffrey Schmid emphasized a neutral policy stance, stating, “I believe we are near the point where the economy needs neither restriction nor support.”

Meanwhile, the 10-year Treasury yield held near 4.7%, reflecting investor uncertainty. Corporate earnings provided some optimism, with Walgreens shares rising over 11% in pre-market trading after the company reported better-than-expected results. Delta Airlines also saw a nearly 8% jump in stock price following record annual revenue driven by a surge in travel demand.

However, Nvidia shares faced pressure amid expectations of new chip export curbs by the White House, which the company criticized as a move to undercut the incoming Trump administration. The broader market remains focused on the jobs report, which could set the tone for economic policy under the new administration.

Globally, bond market volatility has rippled across markets, with UK gilt yields hitting 27-year highs and Asian stock markets under pressure. China‘s ongoing deflationary challenges and aggressive monetary tactics add to the global economic uncertainty. Investors will also monitor earnings reports from Delta Airlines, Walgreens Boots Alliance, and Constellation Brands as the corporate earnings season kicks off.