US equity futures showed a cautious increase ahead of Friday's opening bell as traders analyzed the crucial US monthly nonfarm payrolls employment report. Futures for the Dow Jones Industrial Average experienced a slight gain of 0.1%, while S&P 500 futures rose by 0.2% and Nasdaq futures were up 0.4%.
This movement reflects ongoing market uncertainty as investors await significant economic indicators. Oil prices have also seen an uptick, with front-month global benchmark North Sea Brent crude rising 1.3% to $70.38 per barrel, while US West Texas Intermediate crude followed suit, climbing 1.3% to $67.20 per barrel.
These price changes come in the wake of fluctuating demand and geopolitical influences affecting the oil market. According to the February jobs report released at 8:30 am ET, there was a month-over-month increase of 151,000 in nonfarm payrolls. This figure surpassed the previous month's gain of 125,000 but fell short of Bloomberg's estimate of a larger 160,000 increase.
Additionally, the unemployment rate registered at 4.1%, a slight rise from the anticipated no change at 4.0%. This data is critical for investors as it indicates the health of the labor market and potential Federal Reserve responses. Federal Reserve Chair Jerome Powell is set to speak at the 2025 US Monetary Policy Forum at 12:30 pm ET, a highly-anticipated event that may provide further insights into the Fed's stance on interest rates and monetary policy.
In global markets, Japan's Nikkei index concluded the day down 2.2%. Other Asian markets also faced declines with Hong Kong's Hang Seng dropping 0.6% and China's Shanghai Composite finishing 0.3% lower. In the UK, the FTSE 100 fell by 0.4%, as Germany's DAX index witnessed a substantial drop of 1.6%.
France's CAC 40 declined by 1.1% and Spain's IBEX 35 fell slightly by 0.2% in Europe’s early afternoon session, reflecting a trend of cautious trading across major indices. In individual equities, Hewlett Packard Enterprises saw its stock plummet by 16% after the company reported lower-than-anticipated fiscal Q1 non-GAAP net income and announced plans to cut nearly 5% of its workforce.
Conversely, shares of Intuitive Machines dropped sharply by nearly 34% following media reports indicating that the company’s Athena moon lander appeared to have landed on its side, leading to concerns over mission success. On a positive note, Gap Inc. saw its shares rise by 15% just a day after reporting higher fiscal Q4 earnings, signaling investor confidence in the retailer's performance.
Lands' End also saw its shares increase by 11% after the board announced it is evaluating potential strategic options, which may include a sale or merger, demonstrating the potential for significant corporate restructuring in search of better financial outcomes..