Dow Jones Futures Prediction: Index Hits 51,477 as Investors Assess Weak US Jobs Data and Fed Rate Outlook; Check Monday Market Outlook, Key Things To Watch

Dow Jones futures prediction: Dow futures ended the latest session around 51,477, with investors preparing for the next Wall Street session after a weaker-than-expected US jobs report reduced expectations for another Federal Reserve interest-rate hike in October. The labor-market data, Treasury yields, inflation outlook and geopolitical risks are likely to remain key drivers for stocks when trading resumes.  

Dow Jones futures prediction Monday: What Happened?

US stocks ended higher on Friday after the September employment report showed that nonfarm payrolls increased by only 29,000, significantly below the 90,000 increase economists polled by Reuters had expected.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all advanced during Friday’s session as investors reassessed the likelihood of another Federal Reserve rate increase this month.  

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Dow futures subsequently became a key indicator for investors looking ahead to Monday’s opening, although futures movements do not guarantee where the Dow will open or finish.

US Jobs Report: Payroll Growth Slows Sharply

The September jobs report was weaker than expected, with US employers adding just 29,000 jobs during the month. August payroll growth was revised down to 133,000, from the previously reported 162,000.

Reuters reported that the combined revisions to July and August reduced previously reported employment gains by 60,000 jobs. The unemployment rate also increased to 4.2% from 4.1%, while labor-force participation rose to 61.8%.  

Despite the weak headline payroll number, economists cited by Reuters said the report did not point to a sudden deterioration in labor-market conditions. Initial unemployment claims have remained low, while the economy continues to show signs of a “low-hire, low-fire” labor market.  

Dow Jones Futures Prediction Monday: Fed Rate Outlook In Focus

The latest employment data has become a major factor in the Dow Jones futures outlook because of its potential impact on Federal Reserve policy.

Reuters reported that market expectations for an October rate hike fell sharply after the jobs data. The probability of an October increase was around 23% after the report, compared with much higher expectations earlier in the week.