Futures waver on anxiety ahead of jobs data

(Reuters) – U.S. stock index futures were mixed on Thursday, as investors turned cautious ahead of another jobs report that will be closely monitored for more hints on the health of the American economy after weak economic data last week.

Megacap and growth stocks swung between gains and losses in premarket trading and extended some pressure from the previous session, partly after Treasury yields rose on soft demand for a $42 billion sale of 10-year notes.

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

This has increased the significance of weekly jobless claims data, due at 8:30 a.m. ET, which is expected to show a marginal dip the number of Americans claiming State unemployment benefits in the week ended Aug. 3.

“U.S. weekly jobless claims will be very sensitive given the positions that have stacked up looking for the Fed to cut rates relatively aggressively by year end,” said Marc Ostwald, chief economist & global strategist at ADM Investor Services.

J.P.Morgan has raised the odds of a U.S. recession by the end of this year to 35% from 25%, citing easing labor market pressures.

Money markets currently see a 71.5% chance of a 50-basis-points rate cut by the Fed in September, with possibility of two more cuts by the end of 2024, according to CME’s FedWatch Tool.

Comments from Richmod Fed President Thomas Barkin, who will be speaking at 3 p.m. ET, will also be eyed for any clues on the U.S. central bank’s next move.

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

On the earnings front, Bumble slashed its annual revenue growth forecast on Wednesday, stoking worries about the dating app operator’s growth plans among investors, sending its shares down 35% in premarket trading.

Warner Bros Discovery shares dropped 11.8% after it wrote down the value of its TV assets due to the uncertainty of fees from cable and satellite distributors and sports rights renewals.

(Reporting by Shubham Batra in Bengaluru; Editing by Varun H K)