Muted Market Movements: Investors Brace for Impact

U.S. stock index futures held steady on Thursday as the market awaited the monthly jobs report, a crucial indication of how President Donald Trump's trade policies might be affecting the U.S. economy and the Federal Reserve's approach to interest rates.

Wednesday saw weaker-than-expected data from the U.S. private jobs and services sectors, amplifying the importance of Friday's non-farm payrolls report. While concerns mount over Trump's unpredictable trade policies potentially stunting economic growth, Deutsche Bank's Jim Reid noted that the data wasn't unsettling enough to exacerbate recession fears, keeping investors cautious.

Investors are now predicting more rate cuts this year, anticipating the first by September, even as the Federal Reserve prepares to hold rates following their meeting later this month. This comes amidst increased tariffs on steel and aluminum by Washington and ongoing trade negotiations with China, impacting market sentiment.

(With inputs from agencies.)