US stock futures steady ahead of key labor market data

Investing.com -- U.S. stock futures traded largely flat Thursday, attempting to stabilize after a rocky start to the month ahead of key employment data for clues for future Federal Reserve monetary policy. 

By 05:45 ET (09:45 GMT), the Dow Futures contract was up just 30 points, or 0.1%, while S&P 500 Futures traded 3 points, or 0.1%, lower and Nasdaq 100 Futures dropped 45 points, or 0.2%.

All three main Wall Street indices are down for the week, with the S&P 500 and Nasdaq Composite each closing lower for the second straight session on Wednesday, while the Dow Jones Industrial Average posted small gains.

More labor market data due

Investors are gearing up for fresh labor market data that could influence the Federal Reserve's next monetary policy decision.

Recent economic numbers have pointed to a slowing economy, with the ISM manufacturing survey showing the sector remained in contraction territory, while U.S. job openings dropped to a 3-1/2-year low in July.

There are weekly jobless claims and ADP private payrolls data to digest later in the session, ahead of the crucial monthly payrolls report on Friday.

Traders now see a 45% chance of the Fed lowering rates by an outsized 50 basis points when it meets later this month, and have priced in more than 100 bps worth of cuts by the end of the year.

Helping this belief were comments from Atlanta Fed President Raphael Bostic, who warned that the employment picture could see "disruptions" if interest rates remain too high for much longer.

Verizon linked with Frontier

Verizon Communications (NYSE:VZ) is in the spotlight after the Wall Street Journal reported that the telecoms giant is in advanced talks to purchase Frontier Communications (OTC:FTRCQ), marking a deal that would help boost the firm's fiber network.

An announcement of the acquisition may come as soon as this week, the WSJ said, citing people familiar with the matter.

United States Steel Corporation (NYSE:X) stock rose slightly premarket, after slumping over 17% on Wednesday, on reports that US President Joe Biden is set to block its proposed $14.9 billion takeover by Japan's Nippon Steel due to national security concerns.

US Steel has said that failing to close the deal could put thousands of US union jobs at risk and may force it to shutter some steel mills. 

Crude bounces from multi-month lows

Crude prices rose Thursday, after plunging to multi-month lows, on reports that major producers may delay an output increase as well as falling US inventories.

By 05:45 ET, the Brent contract gained 0.8% to $73.29 per barrel, after falling in the previous session to the lowest close since June 27, 2023, while U.S. crude futures (WTI) traded 0.8% higher at $69.75 a barrel, after dropping on Wednesday to the lowest settlement since Dec. 11.

The market found support after American Petroleum Institute data showed U.S. crude oil fell by 7.431 million barrels last week, more than the 1 million barrel draw expected.

The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, is discussing delaying its oil output increase scheduled to start in October, Reuters reported on Wednesday, citing sources.