U.S. Markets Await Jobs Report Amid Trade Tensions

U.S. stock index futures remained stable on Thursday as investors anticipated the monthly jobs report for clues on the labor market's health and potential Federal Reserve monetary actions.

The S&P 500 and Nasdaq saw record highs following a choppy session on Wednesday, supported by technology stock gains and a trade accord between the United States and Vietnam, easing worries over prolonged trade disputes. In contrast, the Dow closed 1.3% below its December peak.

The focus is on the June nonfarm payrolls report, set to release at 8:30 a.m. ET ahead of schedule in light of the July 4 market closure. Anticipations suggest a slowdown in the U.S. labor market, with the unemployment rate potentially rising to a three-and-a-half-year high of 4.3% amid economic uncertainties linked to the Trump administration's policies.

Fed Chair Jerome Powell advocates for maintaining current rates, citing persistent inflation and a stable labor market. However, a weaker-than-expected jobs report could challenge his stance, intensifying market speculation for a rate cut in July.

Traders have increased the probability of a Fed rate cut in July to 25% from last week's 20% according to CME Group's Fedwatch tool. U.S. stocks briefly dipped mid-week after data showed a significant private payroll reduction in June.

Thursday's economic indicators also feature jobless claims, and S&P Global and ISM services sector evaluations for June. Concurrently, Republicans in the House advanced President Trump's tax and spending plan, projecting an addition of $3.4 trillion to national debt over the next decade.

By early Thursday, S&P 500, Nasdaq 100, and Dow e-minis showed modest gains in premarket activity. Notably, chip design software firms Synopsys and Cadence Design Systems rose significantly as the U.S. ceased export limitations to China. Tripadvisor's shares increased after news of a substantial stake acquired by Starboard Value, while Datadog surged, set to replace Juniper Networks on the S&P 500.

(With inputs from agencies.)