With the non-farm payroll data set to be released, U.S. stock futures rose slightly, with Broadcom up about 6%, and most Chinese concept stocks increased

As expectations for the latest U.S. employment report heat up, global stock markets continue to rise. Investors generally believe that the non-farm report released tonight at 20:30 will pave the way for the Federal Reserve to resume interest rate cuts this month, thereby boosting market sentiment towards optimism.

Boosted by this expectation, U.S. stock index futures rose slightly, with Dow futures up 0.1%, S&P 500 futures up 0.2%, and Nasdaq 100 futures up 0.4%. Broadcom rose about 6%, as the company's third-quarter performance exceeded expectations and significantly raised its growth forecast for 2026. Most Chinese concept stocks rose, with Alibaba up about 3%. European markets also performed steadily, with the Stoxx 600 index up 0.1% and the euro rising 0.2%.

U.S. Treasury prices remained largely unchanged, with the two-year Treasury yield hovering near its lowest level in nearly a year. The dollar is heading towards its weakest week this week, while spot gold remains high, currently at 3547.72.

• In pre-market trading, Broadcom rose about 6%, as the company's third-quarter performance exceeded expectations and significantly raised its growth forecast for 2026. Most Chinese concept stocks rose, with Alibaba up about 3%. U.S. stock index futures rose slightly, with Dow futures up 0.1%, S&P 500 futures up 0.2%, and Nasdaq 100 futures up 0.4%.

• European stocks opened higher collectively, with the Euro Stoxx 50 index opening up 0.4%, the German DAX index up 0.3%, the UK FTSE 100 index up 0.2%, and the French CAC 40 index up 0.2%.

• The Nikkei 225 index closed up 1%, at 43018.75 points. The Tokyo Stock Exchange index closed up 0.8%, at 3105.31 points. The Seoul Composite Index closed up 0.1%, at 3205.12 points.

• The Indian stock market continued its downward trend, with the NIFTY index down 0.25% and the SENSEX index down 0.2%.

• The dollar index fell 0.2%.

• The euro rose 0.2% to 1.1672 USD. The yen rose 0.2% against the dollar to 148.24.

• The 10-year U.S. Treasury yield changed little, at 4.16%.

• The 10-year German Treasury yield changed little, at 2.71%.

• The 10-year UK Treasury yield fell by 1 basis point to 4.71%.

• Brent crude oil fell 0.5% to 66.68 USD per barrel.

• Spot gold remains high, currently at 3547.72.

Employment Data in Focus, Market Bets on Fed Rate Cuts

Market participants are closely monitoring the data details for evidence of a slowdown in the labor market. According to general predictions from economists, the U.S. added about 75,000 jobs in August, with an unemployment rate expected to be 4.3%. If this prediction holds true, it would mark the fourth consecutive month of job growth below 100,000, the weakest growth period since the onset of the pandemic in 2020 However, not all data points indicate weakness. Max McKechnie, a global market strategist at JP Morgan Asset Management, wrote in a report:

"Today's data is unlikely to show the kind of significant weakness that would force the Federal Reserve to accelerate its easing plans. Investors should pay more attention to the unemployment rate and wage growth for clearer insights into the Fed's next moves."

Currently, the money market has fully priced in the expectation of a 25 basis point rate cut by the Federal Reserve this month and anticipates at least two more cuts by the end of the year. The bond market seems to have put recent concerns behind it, completely shifting its focus to Friday's U.S. employment data.

The yield on the U.S. 2-year Treasury bond fell slightly by 0.5 basis points to 3.588%.

However, this report needs to strike a delicate balance to maintain market optimism. According to strategist Mary Nicola's analysis:

"A sharp slowdown in data could reignite concerns about a recession, while a strong report could create trouble by slowing the pace of easing and increasing the political pressure the Fed faces."

The options market pricing reflects an unusually calm expectation, with data showing that traders anticipate the S&P 500 index's volatility on the day of the report to be only about 0.70%, which would be one of the lowest volatilities on a non-farm payroll day in history.

Spot gold remains high, currently at 3547.72.