US equity futures extended gains on Friday after a weaker-than-expected jobs report led investors to scale back expectations for further Federal Reserve tightening. S&P 500 futures rose 0.9%, Nasdaq 100 futures advanced 0.9%, and Dow Jones Industrial Average futures climbed about 460 points.
Nonfarm payrolls increased by just 29,000 last month, well below the consensus forecast for a 90,000 gain, and employment figures for the prior two months were revised lower. The unemployment rate ticked up to 4.2%. Following the data, market-based expectations for Fed policy eased, with futures now pricing in less than one additional rate hike for the remainder of 2026.
A pullback in oil prices is also helping to relieve inflationary pressures and support the bond market, providing an additional tailwind for equities. Even so, all three major US stock indexes remain on track to finish the week lower. The S&P 500 is down 1.2%, putting it on course for its worst weekly performance since August, while the Dow has dropped 1.8% and the Nasdaq is off 0.8%.
