US Labor Market, the Fed, and Earnings in Focus
US futures trended higher during the Asian session on February 3. The Dow Jones E-mini gained 24 points, while the Nasdaq 100 E-mini and the S&P 500 E-mini advanced 83 points and 10 points, respectively.
Later on Tuesday, JOLTs job openings will spotlight the US labor market. Economists expect job openings to drop from 7.146 million in November to 7.1 million in December.
A drop in job openings would support expectations of multiple Fed rate cuts in 2026, fueling demand for US stock futures. Lower borrowing rates could boost earnings and stock valuations. The labor market data will likely have more influence, given the announced delay to Friday’s US jobs report.
Beyond the data, traders should closely monitor Fed speakers. Insights into the labor market, inflation, and the timing of rate cuts would also influence sentiment.
Meanwhile, corporate earnings results will remain key for the near-term market trends. PepsiCo (PEP), Advanced Micro Devices (AMD), and PayPal (PYPL) are among the marquee names to release earnings results.
Strong earnings and lower job openings would support a cautiously bullish short-term and positive medium-term outlook for US stock futures. However, an anticipated House of Representatives vote on a funding bill to reopen the government is also likely to affect risk appetite.
Overnight, President Trump raised hopes of the House passing the funding deal, stating:
“I am working hard with Speaker Johnson to get the current funding deal, which passed in the Senate last week, through the House and to my desk, where I will sign it into Law, IMMEDIATELY! We need to get the Government open, and I hope all Republicans and Democrats will join me in supporting this Bill, and send it to my desk WITHOUT DELAY.”
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Monday’s recovery and morning gains left the Dow Jones E-mini, the Nasdaq 100 E-mini, and the S&P 500 E-mini trading above their 50-day and 200-day EMAs. The EMA positions signaled bullish momentum, aligning with positive fundamentals.
Near-term trends will hinge on geopolitical risks, earnings, US economic data, central bank chatter, and the US House vote. Key levels to monitor include:
Dow Jones
- Resistance: the January 13 record high of 49,901 and then 50,000.
- Support: 49,000 and then the 50-day EMA (48,668).