US equity futures fell on Friday as traders awaited a key US jobs report for more evidence on whether the labor market is slowing fast enough for the Federal Reserve to cut interest rates.
Futures for both the S&P 500 and Nasdaq 100 fell into the red zone after enthusiasm for artificial intelligence and the prospect of Technology were the main catalysts for the 2 indices lifting the two benchmarks by 0.8% and 1.5% respectively on the day Thursday.
This Friday's non-farm payrolls report is important for market players to assess whether the probability of an interest rate cut is possible or far away. Based on signs that inflation and wage growth are easing, market players have been expecting a cut in interest rates of at least 1.25 percent over the next 12 months. That's more than double what the Fed's own policymakers estimated. The Fed has also signaled that they may be done raising rates, while stressing that any talk of tapering is premature for now.
The number of jobs is likely to record an increase of 183,000 for last month, after rising 150,000 in October, while the unemployment rate remained stable at 3.9%.
In currency trading, the US dollar is traded mixed against major currencies. The yen pared gains that took it to its strongest level since August on speculation that the Bank of Japan will soon begin raising its negative reference rate.
