US stock futures were steady on Thursday as investors awaited fresh data to provide a reality check for both interest-rate cut hopes and growing doubts about the health of the US economy.
Futures on the S&P 500 () and Dow Jones Industrial Average () wavered around the flatline, while contracts on the tech-heavy Nasdaq 100 () dipped 0.1%. The major gauges finished Wednesday’s volatile session mixed as their sluggish start to September continued.
Stocks’ lack of momentum comes with the market torn between conflicting impulses as data releases paint a downbeat picture of the economy. Recent soft readings make the case for deeper rate cuts. But they could also be a sign the US is on the brink of recession and a “soft landing” is no longer in the cards.
After data showed job openings slumped, traders now see an almost 50-50 chance the Federal Reserve will lower rates by 0.5% at its September meeting.
Investors are now bracing for Friday’s jobs report for August, crucial to the Fed’s policy decision making and closely watched amid hopes for a “Goldilocks” economy. Updates on ADP private payrolls and jobless claims on Thursday will serve as a lead-in, alongside data on services activity.
On the corporate front, earnings from HPE (HPE) and C3.ai (AI) shed some light on prospects for AI growth. C3.ai shares slumped 20% in pre-market trading after the enterprise AI software maker posted weak subscription revenue. HPE stock slipped as lower amid disappointment over its profitability.
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