Dow, S&P 500, Nasdaq futures inch up as rate-cut bets spike ahead of crucial jobs report

US stock futures climbed up as investors braced for key labor market data, with an interest rate cut now seen as all but certain.

Futures attached to the Dow Jones Industrial Average (YM=F) traded flat. Futures attached to the benchmark S&P 500 (ES=F) ticked up 0.1%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) rose 0.2%.

The final countdown to the August jobs report from the Bureau of Labor Statistics is on, with the data due at 8:30 a.m. ET. The report is expected to confirm recent signs the labor market is cooling and unemployment has ticked up.

Wall Street is now almost certain that a rate cut is coming at the Federal Reserve’s September meeting, with traders pricing in a 99% chance of a reduction. If the August jobs report extends a recent run of weak labor data, however, it could reshape how deep or how fast the Fed cuts rates.

On Thursday, stocks rose, lifting the S&P 500 to a new record. A rise in jobless claims and slowing private sector jobs growth amped up anticipation for the August jobs figures.

Meanwhile, President Trump’s pick for Fed governor, Stephen Miran, said at a Senate hearing that he didn’t plan on withdrawing from his White House role even if he is confirmed to the central bank. Trump also kept up pressure on Fed governor Lisa Cook as well as an FTC commissioner in his quest to oust both officials.

On the trade front, while the Supreme Court considers hearing a case that could invalidate most of Trump’s tariffs, the president sealed a new trade deal with Japan that sets a 15% tariffs on imports from the country.

Read more: The latest on Trump’s tariffs

In after-hour trading Thursday, Lululemon (LULU) dove after the company slashed forecasts citing waning demand and tariff woes. Broadcom (AVGO) drifted up as its earnings showcased soaring AI chip demand.