Futures waver on jobs data anxiety

(Reuters) – U.S. stock index futures were mixed on Thursday as investors turned cautious ahead of a new jobs report that will be closely watched for fresh clues on the health of the U.S. economy after weak economic data last week.

Large-cap and growth stocks traded between gains and losses in premarket trading, extending some of the pressure from the previous session, partly after Treasury yields rose on weak demand for a $42 billion sale of 10-year bonds.

Global markets are experiencing increased volatility this week after disappointing economic reports and the unwinding of currency carry trade positions pushed the Japanese yen higher after the Bank of Japan raised interest rates on July 31.

That added importance to the weekly jobless claims data, due at 8:30 a.m. ET, which is expected to show a marginal decline in the number of Americans seeking state unemployment benefits in the week ended Aug. 3.

“Weekly U.S. jobless claims will be very sensitive given the positions that have built up in anticipation of a relatively aggressive Fed rate cut by year-end,” said Marc Ostwald, chief economist and global strategist at ADM Investor Services.

JPMorgan raised the probability of a U.S. recession by year-end from 25% to 35%, citing easing labor market pressures.

According to the CME’s FedWatch tool, money markets currently price in a 71.5% chance of a 50 basis point rate cut by the Fed in September, with the possibility of two more cuts by the end of 2024.

Comments from Fed Chairman Thomas Barkin, who speaks at 3 p.m. ET, will also be watched for clues about the U.S. central bank’s next move.

As of 4:52 a.m. ET, the U.S. S&P 500 E-minis were down 5.25 points, or 0.1%, the Nasdaq 100 E-minis were up 10.75 points, or 0.06%, and the Dow E-minis were down 60 points, or 0.15%.

On the earnings front, Bumble cut its full-year revenue growth forecast on Wednesday, fueling concerns about the dating app operator’s growth plans among investors, sending its shares down 35% in premarket trading.

Shares of Warner Bros. Discovery fell 11.8% after writing down the value of its television assets due to uncertainty over cable and satellite distributor fees and sports rights renewals.

(Reporting by Shubham Batra in Bengaluru; Editing by Varun HK)