U.S. Stock Futures Mixed Ahead of Key Jobs Report

U.S. stock index futures showed mixed results as investors awaited a crucial jobs report. Megacap and growth stocks varied, reflecting market volatility influenced by rising Treasury yields and global economic uncertainties. Key focus points include weekly jobless claims, potential Fed rate cuts, and reactions to comments from Richmod Fed President Thomas Barkin.

On Thursday, U.S. stock index futures displayed mixed performance as cautious investors awaited the release of another significant jobs report. This report is anticipated to give more insight into the current state of the American economy following recent weak economic data.

Major technology and growth stocks exhibited fluctuations between gains and losses during premarket trading. This was influenced by rising Treasury yields driven by soft demand for a $42 billion sale of 10-year notes. Global financial markets have been particularly volatile this week due to disappointing economic reports and the spike in the Japanese yen after the Bank of Japan's interest rate hike on July 31.

The focus is now on the weekly jobless claims data, expected to show a slight decrease in state unemployment benefit claims as of August 3. According to Marc Ostwald, chief economist and global strategist at ADM Investor Services, "U.S. weekly jobless claims will be very sensitive given the positions that have stacked up looking for the Fed to cut rates relatively aggressively by year end."

Additionally, J.P.Morgan has increased the likelihood of a U.S. recession by the end of the year to 35%, up from 25%, due to easing labor market pressures. Money markets see a 71.5% probability for a 50-basis-point rate cut by the Federal Reserve in September, with potential for two additional cuts by 2024's end, as per CME's FedWatch Tool.

Investors will also pay close attention to comments from Richmod Fed President Thomas Barkin, who is scheduled to speak at 3 p.m. ET. At the latest premarket check, S&P 500 E-minis fell 5.25 points, or 0.1%, Nasdaq 100 E-minis rose 10.75 points, or 0.06%, and Dow E-minis dropped 60 points, or 0.15%.

In earnings news, Bumble cut its annual revenue growth forecast on Wednesday, raising concerns about the dating app operator's growth strategy and pushing its shares down 35% in premarket trading. Warner Bros Discovery shares fell 11.8% after the company wrote down the value of its TV assets amidst uncertainties over fees from cable and satellite distributors and the renewal of sports broadcasting rights.

(With inputs from agencies.)