Stock market futures showed the Dow Jones index and the S&P 500 recording dismal performance on Thursday ahead of the NFP data which is expected to come out the next day. While Nasdaq futures remained strong driven by the rise in Google shares.
Reports showing weak private wages and job vacancies this week have reinforced expectations that the Federal Reserve's rapid pace of rate hikes is slowing the economy, with the possibility that the central bank will ease monetary policy next year.
Traders mostly pegged the Fed as likely to keep interest rates unchanged at its meeting next week, with 61% citing the likelihood of a rate cut as early as March 2024, according to CME Group's FedWatch tool.
However, some analysts have warned that the market is too optimistic about the rate cut and also said the upcoming jobs report will be an important focus that will determine whether the Fed manages to avoid recession or not.
The Labor Department report is expected to show nonfarm payrolls rose by 180,000 jobs last month after rising by 150,000 in October.
Another report expected to show initial job claims rose to 222,000 for the week ended December 2, compared with 218,000 the previous week. On the other hand, comments from Bank of Japan Governor Kazuo Ueda added to growing speculation that the central bank may immediately changed from its ultra-easy monetary policy.
