Investing.com– U.S. stock index futures were little changed in holiday-light trading late Thursday, with focus on key nonfarm payrolls data for further clues on interest rates.
While markets were closed for the Independence Day holiday, Wall Street indexes were at record highs hit earlier this week as a series of weak economic readings raised bets that the Federal Reserve will begin cutting interest rates in September.
But some aggressive signals from the Federal Reserve somewhat counter this idea.
stabilized at 5,588.50 points, while it fell 0.1% to 20,387.25 points at 19:16 ET (13:16 GMT). rose marginally to 39,655.0 points.
Further indications on nonfarm employment rates are expected
Wall Street is expected to remain languid in anticipation of key data due out on Friday.
The reading is expected to show some cooling in the labor market through June, and also follows a series of weaker-than-expected labor market readings this week.
However, payrolls data has surprised on the upside in seven of the past nine months amid continued strength in the labor market. This trend kept investors on alert ahead of Friday’s reading.
A sufficient cooling of the labor market is a key consideration for the Fed when cutting interest rates, a scenario that has yet to materialize.
Wall Street hits record highs amid rate cut hopes
But even with caution ahead of the payrolls data, Wall Street indexes hit record highs on Wednesday amid growing bets the Fed will cut rates in September.
The Ibex 350 rose 0.5% to 5,537.02 points, while the Ibex 350 rose 0.9% to 18,188.30 points and the Ibex 350 fell 0.1% to 39,308.0 points.
The weak readings, along with a softer 0.2%, raised hopes that the US economy was cooling, giving the Fed enough confidence to start cutting rates.
Traders showed they estimate a 66.3% chance of a 25 basis point cut in September, down from 68.4% seen a day ago but up from 59.5% seen last week.
Bets on a rate cut cooled slightly after minutes from the Fed’s June meeting showed policymakers still needed more progress in reducing inflation before cutting rates. Some Fed officials were also seen calling for more rate hikes.