S&P 500 futures hovered near the flatline Thursday night as investors look to Friday’s key jobs report for further clues about the state of the U.S. economy.
Futures tied to the broad market index were little changed. Dow Jones Industrial Average futures inched higher by 45 points, or 0.1%. Nasdaq 100 futures slid about 0.3%.
In after-hours trading, Broadcom slipped nearly 7% after forecasting fiscal fourth-quarter revenue just shy of analysts’ estimates.
Those moves come after the S&P 500 and 30-stock Dow closed lower on Thursday. Investors’ fears over the economy returned after August private payrolls grew by 99,000 — the smallest gain since 2021 and sharply below the Dow Jones consensus estimate of 140,000 — in the latest sign that the labor market is weakening.
All eyes are now on Friday’s August nonfarm payrolls report, which is expected to inform the Federal Reserve’s approach toward interest rates. Economists surveyed by Dow Jones are calling for nonfarm payrolls growth of 161,000 and a slight decline in the unemployment rate to 4.2%.
Despite concerns stemming from the recent labor data, markets remain optimistic that the Fed will begin lowering interest rates by at least a quarter-percentage point at the conclusion of the September policy meeting.
The three major U.S. indexes are down as the shortened trading week comes to a close. The broad market index and Nasdaq are so far lower by 2.6% and 3.3%, respectively. The 30-stock Dow is down 1.9% this week.
“September is living up to its reputation as a historically bad month for stocks. … The sudden change in momentum and jump in volatility has left many investors questioning the sustainability of the recovery from the August lows and if the rebound was simply a relief rally off oversold levels,” LPL Financial chief technical strategist Adam Turnquist said.
Broadcom, DocuSign, UiPath among stocks making biggest after-hours moves
Check out the companies making headlines in after-hours trading:
- DocuSign — The e-signature software company ticked up nearly 1.2% after posting a top- and bottom-line beat. DocuSign’s adjusted earnings of 97 cents per share for the second quarter exceeded analysts’ expectations of 80 cents per share, according to LSEG. DocuSign’s revenue of $736 million also beat estimates of $727 million for the quarter.
- Broadcom — The semiconductor company slipped more than 6.5%. Broadcom said it sees $14 billion of revenue for the fiscal fourth quarter, while analysts called for $14.04 billion, per LSEG. In the fiscal third quarter, Broadcom reported adjusted earnings of $1.24 per share on revenue of $13.07 billion, while analysts polled by LSEG called for earnings of $1.20 per share on revenue of $12.97 billion.
- UiPath — Shares gained 9.5% after the software company’s fiscal second-quarter results came out better than expected. UiPath reported adjusted earnings of 4 cents per share on revenue of $316 million, while analysts surveyed by LSEG called for earnings of 3 cents per share on revenue of $304 million. The company also expanded its stock repurchase program.
For the full list, read here.
— Pia Singh
Stock futures open little changed
U.S. stock futures were little changed shortly after 6 p.m. ET on Thursday.
Dow Jones Industrial Average futures added 51 points, or about 0.1%. S&P 500 futures were slightly above flat, while Nasdaq 100 futures dipped more than 0.1%.
— Pia Singh