Wall Street set for muted open as jobs data disappoints; salesforce shares drop
Wall Street’s main indexes were set for a subdued open on Thursday following softer-than-expected private payrolls data, while Salesforce shares fell after issuing a downbeat revenue forecast.
U.S. private payrolls rose less than anticipated in August, and weekly jobless claims were higher than expected, reflecting easing labor market conditions. Investors continued to price in a strong chance of a September interest rate cut, with bets at 97% according to CME’s FedWatch Tool, News.Az reports, citing Reuters.
“ADP’s softer reading doesn’t indicate a material slowdown, but it points to some weakening in the jobs market, supporting the Fed’s easing bias,” said Eric Teal, CIO at Comerica Wealth Management. Attention now turns to Friday’s nonfarm payrolls report.
Salesforce (CRM) dropped 6% in premarket trading after forecasting third-quarter revenue below Wall Street estimates, highlighting slower monetization of its AI platform. This follows a recent slowdown in momentum for AI-linked stocks, including Nvidia, despite their strong performance earlier this year.
In contrast, American Eagle Outfitters (AEO) surged over 23% after projecting third-quarter sales above estimates, boosted by celebrity partnerships driving demand.
At 8:45 a.m. ET, Dow E-minis were down 13 points (0.03%), S&P 500 E-minis were up 5.75 points (0.09%), and Nasdaq 100 E-minis rose 25.25 points (0.11%).
Rising yields on long-term Treasuries have pressured equities, and September has historically been a weak month for the S&P 500, averaging a 1.5% decline since 2000. Investors also await speeches from Fed officials John Williams and Austan Goolsbee, with the central bank continuing to monitor labor market risks amid expectations of potential rate cuts.
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