S&P Futures Climb on Fed Rate-Cut Hopes, U.S. PMI Data in Focus

Economic Indicators - U.S. nonfarm payrolls increased by 119K in September, surpassing expectations of 53K, while the unemployment rate rose to 4.4%, a nearly 4-year high, compared to expectations of no change at 4.3% [1] - Average hourly earnings in the U.S. rose by 0.2% month-over-month and 3.8% year-over-year, slightly below expectations of 0.3% and 3.7% respectively [1] - U.S. rate futures indicate a 59.0% probability of no rate change and a 41.0% chance of a 25 basis point rate cut at the upcoming Fed meeting [5] Stock Market Performance - Major U.S. indices closed lower, with Nvidia (NVDA) down over 3% and Tesla (TSLA) down more than 2% [2] - Micron Technology (MU) fell over 10%, leading losses in the Nasdaq 100, while Jacobs Solutions (J) dropped over 10% after disappointing earnings [2] - Walmart (WMT) rose more than 6% after reporting better-than-expected Q3 results and raising its full-year guidance [2] Federal Reserve Commentary - New York Fed President John Williams indicated potential for interest rate cuts as the labor market weakens, suggesting a modestly restrictive monetary policy [3] - Cleveland Fed President Beth Hammack warned that rate cuts could prolong above-target inflation and increase financial stability risks [4] - Chicago Fed President Austan Goolsbee expressed caution about approving another rate cut next month, emphasizing the need for careful monetary policy [4] International Market Trends - Euro Stoxx 50 Index fell 1.70%, reflecting declines in Asian and U.S. markets, with technology stocks particularly affected [8] - Japan's Nikkei 225 Index also closed lower, driven by weakness in the technology sector amid fears of an AI bubble [12] - China's Shanghai Composite Index experienced a significant drop, marking its largest weekly decline since late December [11] Corporate Developments - Ubisoft (UBI.FP) surged over 10% after reporting strong FQ2 net bookings and announcing plans to reduce debt [8] - Intuit (INTU) rose over 3% in pre-market trading following stronger-than-expected FQ1 results [15] - The Gap (GAP) climbed more than 4% after reporting better-than-expected Q3 results and raising its sales growth forecast [15]