US futures mixed ahead of US employment update

Wall Street shifted between small gains as losses early Friday with all eyes on the release of U.S. employment data that could affect decisions by the Federal Reserve as it attempts to curb inflation through interest rate hikes.

Futures for the S&P 500 fell less than 0.1% and futures for the Dow Jones Industrial Average rose 0.1%.

Major U.S. indices are poised to finish the week with gains, despite a sell-off over the past two days as other jobs data was released.

U.S. government data Thursday showed the number of applications for unemployment benefits hit a four-month high last week, suggesting the job market might be cooling. On Tuesday, the government reported that the number of available jobs in the U.S. plummeted 10% in August compared with July as businesses grow less desperate for workers.

Sandwiched between those two reports was a private sector report that said U.S. employers hired slightly more workers than forecast in September. That gives ammunition to Fed officials who say more rate hikes are needed to cool the economy and rein in inflation that is at a four-decade high.

U.S. government data due out Friday is expected to show fewer people were hired compared with previous months, but most economists do not believe it will be enough to dissuade the Fed from its aggressive stance after five rate hikes this year.

“What the market seems to be crying out for is a Fed pivot,” said Robert Carnell of ING in a report. “For its part, the Fed is sticking to its ‘higher for longer’ mantra.”

That pivot seems unlikely after Federal Reserve Governor Lisa Cook said Thursday that more interest rate increases will be necessary to wrestle inflation under control, echoing several tough speeches by other central bank officials this week.

Forecasters expect the government...