Stock futures rise as investors look ahead to Friday’s jobs report

U.S. stock futures rose slightly in early Friday morning trade as investors looked ahead to the December jobs report release. Strong jobs data earlier in the day led to declines in the major averages as it pointed to further rate hikes ahead.

Dow Jones Industrial Average futures rose by 96 points, or 0.29%. S&P 500 and Nasdaq 100 futures both climbed 0.3% each.

During the regular session Thursday, the Dow Jones Industrial Average fell 339.69 points, or 1.02%. The S&P 500 declined 1.16%, while the Nasdaq Composite closed 1.47% lower. A stronger-than-expected ADP private payrolls report Thursday weighed on the major indexes.

Recession fears remained top of mind for investors as they deliberated whether the Federal Reserve could navigate a soft landing in its fight against inflation.

“I’m allowing in my thinking that we could have a recession by the end of the year, and that recession will be brought about by Fed tightening, QT, quantitative tightening, a stronger dollar, or the price of oil,” said Omega Family Office’s Leon Cooperman on CNBC’s “Closing Bell: Overtime” on Thursday.

“And if we have a recession, the market will have ended its decline, say, down 35% from its peak, so that gives you the low 3,000s,” Cooperman added.

Traders are anticipating the December jobs report before the bell Friday. Economists polled by the Dow Jones expect the U.S. added 200,000 jobs last month, which would mean a deceleration from gains in the prior month. A better-than-expected report pointing to a resilient labor market could mean the Fed has further to go in its efforts to tame inflation.

Stocks are headed for losses in the first trading week of 2023. As of Thursday’s close, the Dow is down 0.66% week to date, headed for its fourth down week in five. Meanwhile, the S&P 500 and the Nasdaq are both on pace for their fifth straight week of losses, down 0.82% and 1.54%, respectively.