Wall Street Futures Rise Ahead of Key US Jobs Report Amid Middle East Tensions
Wall Street futures are rising ahead of the crucial US monthly employment report, with Nasdaq futures up about 0.5%, S&P 500 futures rising 0.2%, and Dow Jones futures increasing 0.1%. European markets are also trading higher, with Germany's DAX up 0.9%, France's CAC 0.4%, and the UK's FTSE 100 gaining 0.7%. Analysts expect the US jobs report for July to show continued healthy job growth, with Bank of America forecasting an addition of around 80,000 jobs and a slight rise in unemployment to 4.3% due to increased labor force participation. The bank views these figures as signs of a stable labor market and expects persistent inflation and strong employment to support three more Federal Reserve rate hikes this year, possibly starting in September.
Recent US data showed initial jobless claims remain low, with 199,000 claims for the week ending August 1, marking the third consecutive week below 200,000, a level not seen since 1969. The four-week moving average also dropped to its lowest since September 2022. Meanwhile, oil prices surged amid escalating tensions in the Middle East and uncertainty over the Strait of Hormuz. Brent crude briefly rose above $82 per barrel, a 4% jump, after Iran's state news agency released a draft plan imposing restrictions on shipping through the strait, including bans on US and Israeli vessels and penalties for violators.
On Wall Street, the Nasdaq closed slightly lower yesterday, weighed down by semiconductor and storage stocks despite strong earnings from Sandisk and Western Digital. The S&P 500 fell 0.2%, and the Dow dropped 0.8%, ending a six-day winning streak, pressured by declines in Salesforce, Boeing, and UnitedHealth. Energy stocks led gains, boosted by rising oil prices, with ExxonMobil and Chevron notable performers. Alphabet is exploring a $25 billion bond issuance amid recent tech sector bond market volatility. Private equity firm Apollo Global Management agreed to acquire British airline easyJet for about £5.7 billion ($7.7 billion) after a prolonged bidding battle.
SpaceX shares rebounded after early investors were allowed to sell shares for the first time since its IPO, defying expectations of a sell-off. Israeli company Monday.com’s shareholders approved doubling the compensation packages for co-CEOs Roy Man and Eran Zinman, despite recent layoffs and a 38% stock decline this year. Playtika shares fell sharply despite returning to profitability in Q2 2026, while Amdocs shares rose after reporting quarterly earnings in line with expectations.
Asian markets closed mixed, with Japan’s Nikkei down 0.1% and South Korea’s Kospi down 0.6%, while China’s Shanghai Composite and Hong Kong’s Hang Seng rose about 1% and 0.4%, respectively. Chinese export data for July showed a 23% year-over-year increase, surpassing forecasts, though growth slowed from June’s 27% surge. Imports rose 27.5%, slightly below estimates, also reflecting a slowdown from June’s 36% jump.