US Stock Futures Mixed as Strong Jobs Data Fuels Fed Rate Hike Bets

U.S. stock futures traded mixed on Sunday evening as investors digested a stronger-than-expected August jobs report. Nonfarm payrolls increased by 162,000, significantly exceeding the forecasted 56,000 new jobs, while the unemployment rate stayed at 4.1%.

Dow Jones futures dropped 0.5% to 53,196.0 points and S&P 500 futures slipped 0.1% to 7,718.25. Meanwhile, Nasdaq 100 futures gained 0.3% to reach 29,640.0.

“The Fed must determine whether higher energy prices will remain isolated or spread through the broader economy.”

The strong labor market data boosted expectations that the Federal Reserve could raise interest rates at its September 15-16 meeting. Interest-rate futures indicated a 60% probability of a 25-basis-point hike.

Attention now shifts to upcoming U.S. inflation data, including the Producer Price Index on September 10 and the Consumer Price Index on September 11. These reports could provide major signals for the Fed's upcoming decision.

U.S. cash equity markets remained closed Monday for the Labor Day holiday and are scheduled to reopen on Tuesday. Thin holiday liquidity could amplify market reactions to economic signals throughout the week.