US Stock Futures Flat as Investors Await Services Data and Fed Minutes: Dow Jones, S&P, Nasdaq, Wall Street

US stock index futures pointed to a broadly flat open on Monday as investors assessed recent volatility in Treasury yields and awaited economic data that could influence expectations for Federal Reserve policy.

The yield on the benchmark 10-year Treasury note was little changed after recently reaching multi-decade highs.

Attention is expected to turn to the Institute for Supply Management’s September services sector report shortly after the opening bell. The services PMI is forecast to ease to 55.0 from 55.4 in August. A reading above 50 indicates expansion.

“Another strong activity reading could revive the “good news is bad news” dynamic and push yields higher again, while evidence of moderation would reinforce the case for the Fed to wait,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

Investors are also awaiting minutes from the Federal Reserve’s latest monetary policy meeting, due on Wednesday, for further information on policymakers’ views ahead of the central bank’s next meeting later this month.

Following weaker-than-expected September employment data on Friday, CME Group’s FedWatch Tool indicated an 80.6% probability that the Fed would leave interest rates unchanged.

Nasdaq Gained 1.2% on Friday After Jobs Report

US equities finished higher on Friday, although the major indices ended below their session highs.

The Nasdaq gained 319.27 points, or 1.2%, to 27,190.86, while the S&P 500 advanced 56.27 points, or 0.7%, to 7,722.72. The Dow Jones Industrial Average rose 250.40 points, or 0.5%, to 51,176.96.

Performance was mixed for the week, with the Nasdaq rising 0.5%, while the S&P 500 declined 0.3% and the Dow fell 1.3%.

Friday’s early gains followed Labor Department data showing non-farm payrolls increased by 29,000 in September, below economists’ expectations for an increase of 85,000. August’s increase was revised down to 133,000.

The unemployment rate rose to 4.2% from 4.1%, compared with expectations for an unchanged reading.

Treasury yields initially fell following the employment report as investors reduced expectations for another Federal Reserve interest-rate increase at its next meeting, although yields subsequently recovered some ground.

Semiconductor Stocks Led Friday’s Sector Gains

Crude oil declined 1.9% on Friday after the Group of Seven countries confirmed plans to release diesel and crude reserves, although prices recovered from their session lows.

Semiconductor stocks recorded gains, with the Philadelphia Semiconductor Index rising 2.4% to a three-month closing high.

The NYSE Arca Networking Index advanced 2.2%, while transportation and computer hardware stocks also moved higher. Airline stocks declined during the session.

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