S&P 500, Nasdaq set to open higher after weak jobs data; Broadcom jumps

The S&P 500 and the Nasdaq were on track for a higher open on Friday after weaker-than-expected August jobs data raised investor bets on imminent Fed rate cuts, while chip major Broadcom gained after impressive quarterly earnings.

Broadcom AVGO soared about 14% in premarket trading after the chip designer forecast fourth-quarter revenue above estimates and expected AI revenue growth to "improve significantly" in fiscal-year 2026.

U.S. job growth weakened sharply in August and the unemployment rate rose to 4.3%, confirming that labor market conditions were softening and sealing the case for an interest-rate cut from the Federal Reserve this month.

Traders of futures tied to the central bank's policy rate added to bets that the Fed will cut interest rates in quick succession starting this month.

CME's FedWatch Tool showed markets are now pricing in an 11% chance of a jumbo 50-basis-point cut in September.

"It shows that the labor market is stalling to the point where we could experience negative job growth in the months ahead and this is due to uncertainties over tariffs," said Peter Cardillo, chief market economist at Spartan Capital Securities.

"This perhaps raises speculation that the Fed could cut (borrowing costs) by 50 basis points in September."

At 08:44 a.m. ET, Dow E-minis (YMcv1) fell 45 points, or 0.1%, S&P 500 E-minis ES1! rose 14.25 points, or 0.22%, and Nasdaq 100 E-minis NQ1! added 152.5 points, or 0.64%.

Broadcom's results gave respite to investors who were unimpressed by Nvidia's NVDA quarterly results last week and concerned after the lofty valuations of AI-related firms briefly paused Wall Street's rally last month.

On the other hand, Lululemon Athletica LULU plunged 19.7% after the yogawear-maker slashed its annual profit forecast the second time in a row, dragging larger rival Nike NKE down 1.2%.

Despite the anticipation around payrolls, the S&P 500 closed at a record high on Thursday, with the Nasdaq and the Dow also finishing higher as rate-cut hopes remained intact after a slew of economic indicators.

The benchmark index is within touching distance of an intraday record high set on August 28.

Wall Street's three main indexes were on track for gains in the first week of September. The S&P 500 has lost 1.5% on average in September since 2000, according to LSEG data, making it the worst month historically for U.S. equities.

In other moves, Tesla TSLA added to gains and was last up 2.1% after the EV-maker proposed an about $1-trillion compensation package for top boss Elon Musk, subject to achieving lofty performance targets.

Samsara IOT advanced 13% after the software firm beat second-quarter revenue expectations.

Cryptocurrency stocks rose as bitcoin BTCUSD prices hit a more than one-week high. Strategy MSTR was up 2.8% and Coinbase COIN and Riot Platforms RIOT gained 1.8% each.