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Stock futures inched higher on Thursday night as traders awaited the release of September's jobs report.
S&P 500 futures were up 0.1%, while futures tied to Dow Jones Industrial Average were up 38 points, or 0.07%. Nasdaq-100 futures advanced 0.3%.
In the regular trading day, the Dow and the Nasdaq Composite ended the session marginally higher. The S&P 500 posted a 0.2% advance to conclude the first trading day in October. All three indices are on pace for weekly losses, with the Dow off 1.7% in the period.
Asia-Pacific stocks were mostly lower Friday. Japan's Nikkei 225 declined 0.95%, after gaining sharply on Thursday. South Korea's Kospi lost 1%. Hong Kong's Hang Seng Index lost 2.48% after resuming trade from a holiday. Australia's S&P/ASX 200 was up 0.35% at the open.
Treasury yields climbed to multiyear highs before retreating. The benchmark 10-year Treasury note yield soared to 5.344%, its highest level since 2002. The yield on the 30-year Treasury bond also reached its highest in 24 years.
Oil prices also climbed after The Wall Street Journal reported the U.S. is sending a third aircraft carrier strike group to the Middle East. Brent crude futures gained more than 4% to close at $102.31 per barrel, while U.S. West Texas Intermediate futures advanced 2.7% to settle at $92.87 a barrel.
September's nonfarm payrolls report will be in the spotlight Friday, with the Dow Jones consensus calling for job growth of 84,000 and for the unemployment to hold steady at 4.1%.
The report comes as traders reassess the next move for the Federal Reserve. Fed funds futures trading suggests a 72% likelihood the central bank will stand pat in October.
Given that the current narrative suggests the labor market is stable, a strong jobs report alone would likely not push the Fed to hike in October, said Christopher Hodge, a chief U.S. economist at Natixis CIB Americas. Hodge expects growth in the manufacturing and construction sector amid a data center buildout.
"We expect payrolls to slow from the torrid pace from August, but still to register solid gains. We expect payrolls to increase by 60k, which if realized, would bring the three-month moving average of gains to 81k," Hodge said.
Oil extended gains Friday, as traders continue to assess Mideast developments following a report the U.S. is sending a third aircraft carrier strike group to the Middle East.
Futures for international benchmark Brent crude for December delivery gained 0.33% to $102.65 a barrel. U.S. West Texas Intermediate futures for June advanced 0.17% at $93.03 per barrel.
According to the Wall Street Journal, Marine Corps ships and up to 10,000 additional troops are also being deployed to the region. The forces are expected to arrive by the end of November, WSJ said, citing officials.
Oil prices could go even higher, as tensions between the U.S. and Iran continue to simmer. "From a trading standpoint, you're unlikely to get a $15 drop in crude oil. It's a higher chance you get a $15 move up," said Simon Lack, portfolio manager of Catalyst Energy Infrastructure Fund on Thursday.
"The Iranians, even though all of their offensive capabilities are taken out, they seem to find ways to fire missiles, and they could start hitting infrastructure again along the Persian Gulf," Lack added.
Asia-Pacific stocks opened mixed on Friday, after closing broadly higher in the previous session as Mideast energy worries dent sentiment.
Japan's Nikkei 225 declined 1.06%, after rising sharply on Thursday. The Topix was down 0.87%. South Korea's Kospi lost 0.33%, while the small-cap Kosdaq added 0.89%.
Australia's S&P/ASX 200 was up 0.36% at the open.
Asian stocks were poised to open mixed on Friday as a surge in oil prices on renewed U.S.-Iran tensions stoked fresh inflation concerns.
Japan's Nikkei 225 was set to open lower, with its Chicago and Osaka futures contracts last at 68,410 and 68,460 respectively, compared with the index's previous close of 68,956.72.
Futures for Australia's S&P/ASX 200 last traded at 8,678 compared with the index's previous close of 8,614.4.
Futures for Hong Kong's Hang Seng index stood at 24,422, lower than its last close of 24,613.27.
Mainland China markets will remain closed for a holiday.
Investors will also continue to keep an eye on the bond markets after U.S. Treasurys rebounded.
Seeds and genetics company Vylor was added to the S&P 500 on Thursday after it was spun off from Corteva the same day. The company replaced Corteva, which will move to the S&P MidCap 400.
Twilio, which provides a customer engagement platform, will replace Warner Bros. Discovery in the S&P 500 on Oct. 6. This comes as Paramount is set to acquire Warner Bros. Discovery soon following a California judge's order on Wednesday.
Shares for Twilio popped over 1% in extended trading. Meanwhile, Vylor shares were last up 3%.
Shares for Nike fell over 6% in extended trading after the company posted lackluster sales in the fiscal first quarter and announced plans for layoffs.
Nike earned 48 cents per share on revenue of $11.21 billion, compared to the LSEG consensus estimate of 43 cents per share and $11.32 billion. Sales were down 4%, with the company citing declines in its China business.
For its full-year outlook, the company expects revenue to decline by a high-single digit percentage in fiscal 2027.
Nike also announced a restructuring plan, which is expected to lead to layoffs starting in 2027. The company did not specify how many jobs would be cut.
U.S. equity futures were little changed on Thursday evening. Futures tied to the Dow Jones Industrial Average gained 10 points, or 0.02%. S&P 500 futures rose 0.03% and Nasdaq-100 futures climbed by 0.07%.