US Jobs Report in Focus as Middle East Tensions and Corporate News Shape Markets: Dow Jones, S&P, Nasdaq, Wall Street Futures

US stock futures traded close to unchanged on Friday as investors awaited the latest employment data, a key release that could influence the Federal Reserve’s next interest rate decision. Markets were also monitoring renewed geopolitical tensions in the Middle East following a fresh Houthi attack on Saudi Arabia, while reports suggested Iran and Oman are nearing an agreement over shipping through the Strait of Hormuz.

Futures Hold Steady Ahead of Payroll Data

At 02:52 ET (06:52 GMT), Dow Jones futures were down 66 points, or 0.1%, S&P 500 futures were broadly flat, and Nasdaq 100 futures rose 54 points, or 0.2%.

Wall Street ended Thursday’s session lower. The Nasdaq Composite slipped 0.06% after earnings from memory chip manufacturers Sandisk (NASDAQ:SNDK) and Western Digital (NASDAQ:WDC) met expectations but failed to impress investors with their outlooks.

The Dow Jones Industrial Average declined 0.85%, ending a five-session winning streak as shares of Salesforce (NYSE:CRM) and UnitedHealth (NYSE:UNH) moved lower.

The S&P 500 fell 0.18%, although analysts at Vital Knowledge noted that it was “impressive the index didn’t fall more than it did considering a number of negatives.” They cited disappointing technology guidance, higher Treasury yields, renewed questions surrounding Federal Reserve independence and stronger oil prices as factors weighing on sentiment.

Employment Data Could Influence Fed Policy

Attention is now firmly on the US Labour Department’s July nonfarm payrolls report.

Economists expect the US economy to have created 88,000 jobs during the month, compared with 57,000 in June, while the unemployment rate is forecast to remain unchanged at 4.2%.

Recent labour market data has painted a mixed picture. Hiring has remained relatively subdued, but layoffs have also stayed low. At the same time, tighter immigration policies and increased retirements among baby boomers have reduced labour force participation, with the workforce shrinking by 720,000 between May and June. The participation rate fell to 61.5% in June, its lowest level since March 2021.

Other economic indicators released this week showed employment contracting in the services sector, while private-sector payrolls increased by 44,000 in July, down from 95,000 in June.

Thomas Ryan, Senior North America Economist at Capital Economics, said broader economic data continues to point to resilient underlying demand, leaving investors to assess whether the Federal Reserve will prioritise controlling inflation or supporting employment in the months ahead.

Saudi Arabia Warns of Escalating Regional Conflict

Saudi Arabia warned that tensions in the Middle East could intensify after Iran-backed Houthi forces launched an attack that injured 11 civilians.

According to Reuters, those injured included seven Saudi nationals, one Yemeni, two Egyptians and one Pakistani. Neither the Houthis nor Iran immediately commented on the incident.

The attack came despite reports that Iran and Oman are close to reaching an agreement aimed at restoring shipping through the Strait of Hormuz. However, uncertainty remains over whether any arrangement will be sufficient to reduce regional tensions and safeguard global oil supplies.

US President Donald Trump declined to confirm whether a final agreement had been reached, saying only that the waterway is “sort of open right now.” Iran, meanwhile, said negotiations with Oman are in the “final stage”, although officials suggested any agreement would depend on the United States easing restrictions on Iranian ports.

The Associated Press, citing a US official, reported that any temporary shipping arrangements would avoid imposing new fees or approval requirements on vessels using the strait.

Brent crude futures rose 1.2% to $83.46 per barrel as traders continued to monitor developments.

Meta Ordered to Pay $942 Million in Child Safety Case

Meta Platforms (NASDAQ:META) has been ordered by a New Mexico court to pay more than $900 million into a fund designed to address harm suffered by young users of Facebook and Instagram.

The ruling follows a March jury verdict that found Meta had breached New Mexico consumer protection laws by misrepresenting the safety of its platforms for children.

Judge Bryan Biedscheid also ordered the company to introduce additional measures to improve child safety. The total financial liability now stands at $942 million, including a previously imposed civil penalty.

Berkshire Hathaway Earnings Due This Weekend

Investors are also looking ahead to Berkshire Hathaway’s (NYSE:BRK.B) quarterly results, which are scheduled for release on Saturday.

The figures will provide further insight into the company’s performance under chief executive Greg Abel, who succeeded Warren Buffett. Berkshire previously reported stronger operating earnings in the first quarter while ending the period with $380.2 billion in cash.

The company has also continued reshaping its investment portfolio, including a $2.65 billion investment in Delta Air Lines and reductions in holdings of Amazon, Visa and Mastercard.

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