Wall Street Braces for Labor Report Amid Inflation Worries

U.S. stock index futures fell as traders awaited a key labor market report, with inflation concerns and uncertainty over the incoming Trump administration's policies creating market anxiety. The Federal Reserve faces challenges on interest rate decisions, and investors are on edge about potential economic impacts.

On Friday, U.S. stock index futures dipped as investors braced for a critical labor market report. The anticipation of policy changes under President-elect Trump, combined with inflation concerns, have complicated the Federal Reserve's monetary strategy.

At 7:06 a.m. ET, Dow E-minis saw a decrease of 0.15%, S&P 500 E-minis dropped 0.31%, and Nasdaq 100 E-minis were down by 0.37%. Treasury yields heightened anxiety, with the 10-year benchmark near an eight-month high.

The Labor Department's upcoming report is expected to show 160,000 new jobs in December, keeping unemployment steady at 4.2%. Investors eagerly await the University of Michigan's sentiment report and the expected impacts of Trump's economic policies.

(With inputs from agencies.)