US stock futures held relatively steady early Thursday as investors awaited the release of the June jobs report, a key indicator of the labor market’s health, and tracked developments in trade and fiscal policy out of Washington.
As of 6 a.m. ET, Dow Jones Industrial Average futures were up 0.06%, while S&P 500 futures and Nasdaq 100 futures rose 0.06% and 0.10%, respectively. Markets are navigating several variables, including labor data, political developments, and corporate movements ahead of the holiday weekend.
Economists polled by Dow Jones expect the US economy added 110,000 jobs in June, down from 139,000 in May. The unemployment rate is projected to edge higher to 4.3%, compared to 4.2% the prior month.
Some analysts suggest the data may reflect a gradual cooling of the labor market rather than a broader downturn.
“The labor market is moderating rather than deteriorating,” said Shruti Mishra, US economist at Bank of America.
A weaker-than-expected report could prompt speculation that the Federal Reserve may consider cutting interest rates sooner than anticipated, possibly as early as July. However, such a development might also shift investor sentiment away from tech stocks, which comprise about 40% of the S&P 500, toward more value-oriented shares.
In Washington, lawmakers are advancing President Donald Trump’s tax and spending bill, often referred to as the “One Big Beautiful Bill.” The bill passed a key procedural vote in the Republican-led House by a narrow margin, and is being closely watched for its potential impact on the federal deficit and social programs. A final vote is expected soon.
Meanwhile, Trump announced a new trade agreement with Vietnam, including a 20% tariff on direct imports and a 40% levy on goods rerouted through the country, as part of his administration’s broader trade strategy. Investors are monitoring these developments for their possible effects on inflation and global supply chains.
In corporate news, Datadog shares surged more than 9% in premarket trading after Wedbush analyst Dan Ives raised his price target and following the company’s announced inclusion in the S&P 500 index. Datadog will replace Juniper Networks, recently acquired by Hewlett Packard Enterprise.
Separately, Tripadvisor stock climbed more than 8% after a Wall Street Journal report that activist investor Starboard Value had acquired a stake exceeding 9% in the online travel company.
Chip software firms Synopsys and Cadence also saw gains after revealing that the US government lifted recent export restrictions on semiconductor design software to China, easing fears of extended trade tensions in the tech sector.
Markets will observe a shortened trading session on Thursday, with the New York Stock Exchange and Nasdaq closing at 1 p.m. ET ahead of the Independence Day holiday on Friday.
Despite reaching record highs earlier this week, analysts at S3 Partners noted that short interest in both the S&P 500 and Nasdaq-100 has been rising, signaling some investor caution amid the market’s broader rally.
