Investors Anticipate Federal Reserve Interest Rate Decision Amid Economic Data

U.S. stock index futures remained steady as investors awaited a series of economic data to gauge the Federal Reserve's interest rate cut decision. The S&P 500 and Nasdaq saw declines due to job openings drop and recession fears. Attention is on upcoming employment report and economic surveys.

U.S. stock index futures held steady on Thursday as investors awaited economic data that could influence the Federal Reserve's expected interest rate cut later this month.

The S&P 500 and Nasdaq saw declines on Wednesday for the second consecutive session after a drop in job openings and a Fed survey heightened fears of a slowing economy. According to the CME Group's FedWatch Tool, traders' predictions for a 25-basis point rate cut at the Fed's September meeting stood at 57%, while bets for a larger 50-basis point reduction climbed to 43%, up from 34% a week ago.

"The concern is that the Fed may have delayed easing monetary policy too long, risking a harder economic landing," said David Morrison, senior market analyst at Trade Nation. Historically, September has been a weak month for U.S. equities, with the benchmark index averaging a 1.2% decline since 1928.

Fears of a cooling labor market potentially signaling a looming recession contributed to caution, with the S&P 500 decreasing over 2% and tech stocks dropping nearly 5% this week. Late Wednesday, San Francisco Fed President Mary Daly, a voting member, emphasized the need for lower borrowing costs to maintain a healthy labor market.

The focus will turn to the ADP National Employment Report and weekly jobless claims, ahead of Friday's crucial non-farm payrolls data from the Labor Department. Economists predict the ADP report will show a rise in private payrolls by 145,000 jobs in August, up from an increase of 122,000 in July.

The Institute for Supply Management survey, due at 10 a.m. ET, is anticipated to indicate that non-manufacturing activity in August stood at 51.1. At 07:21 a.m., Dow E-minis were up 19 points (0.05%), S&P 500 E-minis rose 0.75 point (0.01%), and Nasdaq 100 E-minis fell 26.75 points (0.14%).

Nvidia saw a slight premarket increase of 0.5%, after a more than 11% drop over the past two sessions. The company reported it had not received a subpoena from the U.S. Justice Department. Tesla gained 2.5%, announcing plans to launch full self-driving software in Europe and China next year, pending regulatory approval.

C3.ai plummeted 19% after missing quarterly subscription revenue expectations. Frontier Communications fell 10%, while Verizon announced plans to acquire the company in a $20 billion all-cash deal.

JetBlue Airways surged 5.8% after raising its third-quarter revenue forecast. As the U.S. presidential elections approach, Goldman Sachs analysts noted that Democratic candidate Kamala Harris' proposed corporate tax hike could reduce S&P 500 company earnings by about 5%, whereas Republican candidate Donald Trump's proposed relief could boost earnings by approximately 4%.

(With inputs from agencies.)