U.S. stock futures rose on Friday as a weaker-than-expected jobs report strengthened investor expectations that the Federal Reserve will cut interest rates later this year. Futures for the S&P 500 gained 0.3%, while the Dow Jones Industrial Average rose 0.2%. Nasdaq futures climbed 0.4%, rebounding from a sharp selloff earlier in the week that pushed the tech-heavy index into correction territory.
The February jobs report showed that nonfarm payrolls increased by 151,000, below economists’ forecasts. The unemployment rate edged higher to 4.1%, reinforcing market expectations that the Fed could implement multiple rate cuts in 2025. “The market is back to pricing in three rate cuts in 2025, but I wouldn’t bank on the Fed sending any dovish signals anytime soon,” said Brian Jacobsen, chief economist at Annex Wealth Management. “With the unemployment rate at 4.1% and inflation still above target, they have no reason to change their messaging yet.”
The report followed a week of turbulence in global markets, fueled by uncertainty surrounding President Donald Trump’s shifting tariff policies. Stocks had tumbled Thursday after Trump granted a temporary reprieve from his 25% tariffs on Mexican and Canadian imports. The move failed to inspire investor confidence, as market participants remained wary of the administration’s unpredictable trade policies. Trump’s broader tariff plan, set to take full effect on April 2, continues to create uncertainty among businesses and consumers.
The Nasdaq has fallen 4% this week, entering correction territory with a decline of more than 10% from its December peak. The S&P 500 has dropped 3.6% over four days, closing Thursday at its lowest level since early November. The Dow Jones Industrial Average has lost nearly 2.9% since the start of the week.
