U.S. stock futures were little changed at the start of a week, with a key jobs report that could set the market tone for the rest of the year.
U.S. stock and bond markets were closed Monday for Labor Day. Futures tied to the tech-focused Nasdaq-100 rose slightly in light trading, while the Dow industrials edged lower.
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A tumultuous August closed on a high note on Friday, with the S&P 500 ending up 1% and the Nasdaq-100 up 1.1% for the day. All indexes rose for the month.
September looks less promising if history is any indication. The S&P 500 has lost ground in each of the last four Septembers, according to Deutsche Bank.
A lot of what happens next could depend on the August jobs report due Friday. A disappointing one for July triggered worries about the economy and the unwinding of popular trades, including bets on large technology companies.
“The jobs report is by far the biggest event we are all waiting for,” said Jan von Gerich, chief analyst at Nordea.
Von Gerich said his expectation is that the August jobs report won’t show the type of weakness seen in July, setting the Federal Reserve to gradually cut interest rates. But if many more jobs were created last month, it could trigger a selloff in bonds, given the Fed might be less willing to act decisively.
Outside the U.S., indexes were mixed on Monday. Hong Kong’s Hang Seng Index fell more than 1.6% after mixed Chinese manufacturing data.
In Germany, where the nationalist AfD party scored its first victory in a state election, the DAX index pared initial losses to close at a record high. Analysts said it was unlikely AfD could actually govern given pledges from other parties not to form coalitions with it.
In the U.K., shares of Rightmove jumped more than 25% after Australia’s REA Group said it was considering an offer for its peer, with the goal of creating a $25 billion real estate advertiser. REA shares fell 5% in Australia.
REA is 61% owned by News Corp., which owns Dow Jones & Co., the publisher of The Wall Street Journal.
Write to Patricia Kowsmann at patricia.kowsmann@wsj.com
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