Dow Futures remain subdued as traders prepare for crucial job market data while evaluating the potential for a reduction in U.S. interest rates later this month. Salesforce raises its full-year revenue and adjusted profit outlook, driven by robust demand for its artificial intelligence agents. In other developments, crude prices are experiencing an uptick following the resurgence of Ukrainian assaults on Russian oil infrastructure.
Dow Futures remained near the flatline on Thursday, reducing some of the earlier gains, as investors focused on forthcoming economic data that may influence expectations for a Federal Reserve interest rate cut later this month. As of 03:31, the Dow futures contract exhibited minimal variation, while S&P 500 futures experienced a decline of 5 points, equivalent to 0.1%, and Nasdaq 100 futures decreased by 38 points, or 0.2%. The principal indices on Wall Street experienced an upward movement in the previous session. Traders evaluated a decrease in a metric of private-sector payrolls, alongside a distinct survey from the Institute for Supply Management indicating a contraction in employment within the services sector and a reduction in a subindex of prices paid. The data collectively reinforced expectations that the Federal Reserve, assessing a weakening labor market alongside indications of persistent yet generally stable inflation, would reduce rates by 25 basis points during its meeting on December 9-10. The probability of such a reduction currently hovers around 89%, as indicated by the reports. Markets appeared unfazed by a media report indicating that various divisions within tech giant Microsoft had revised their sales growth targets downward for specific artificial intelligence-related products. Shares of Microsoft, which refuted the report, experienced a decline of 2.5%.
On Thursday, investors will have the opportunity to analyze additional job market data, as the U.S. Labor Department publishes its weekly figures on first-time applications for unemployment benefits. Analysts project that the reading will register at 219,000, reflecting a slight increase from 216,000 in the previous week. Last week’s figures represented a seven-month low for the metric, suggesting that although layoffs and firings have remained minimal, the demand for Americans seeking employment has continued to be subdued. Despite a notable lack of extensive official employment data resulting from an unprecedented federal government shutdown, the Federal Reserve contended during its meetings in October and September that sufficient evidence exists indicating a deceleration in the labor market, thereby justifying a reduction in borrowing costs.
Salesforce shares experienced an increase of over 2% in after-hours trading following the company’s upward revision of its fiscal 2026 revenue and adjusted income projections. The positive forecast is supported by anticipated robust growth in demand for the group’s AI-enhanced agent platform, particularly from its enterprise clients. The forecast underscores the advantages Salesforce expects to gain from an increasing number of businesses embracing AI tools to enhance operational efficiency. Mega-cap technology firms, including Oracle, have notably leveraged the company’s AI agents, which possess the capability to automate tasks and execute certain decisions. In a statement, CEO Marc Benioff indicated that its Agentforce and Data 360 products have been “the momentum drivers,” achieving annual recurring revenues of nearly $1.4 billion, which reflects “explosive” growth of 114% year-over-year.
Gold prices experienced a slight decline, influenced by profit-taking, despite a growing sense of confidence among investors regarding a potential interest rate cut by the Fed in the upcoming week. Spot gold was last down 0.3% at $4,191.39 an ounce, while U.S. Gold Futures for February delivery had slipped 0.3% to $4,219.40 an ounce. The expectation of declining interest rates generally favors non-yielding assets like bullion. In conjunction with the weekly initial jobless claims data set to be released later today, focus is directed towards the postponed September Personal Consumption Expenditures price index, which serves as the Federal Reserve’s favored measure of inflation, scheduled for Friday.
Oil prices increased following additional strikes on Russian oil infrastructure, which heightened concerns regarding global supply. This development comes amid stagnant diplomatic efforts to resolve the ongoing conflict in Ukraine. Brent futures increased by 0.6%, reaching $63.04 per barrel, while U.S. West Texas Intermediate crude futures rose by 0.8% to $59.42 per barrel. A report on Wednesday, referencing sources, indicated that Ukrainian forces targeted the Druzhba pipeline located in Russia’s central Tambov region, reigniting apprehensions regarding possible interruptions to Russian oil exports. Simultaneously, high-level peace negotiations involving U.S. and Russian officials wrapped up earlier this week without yielding any significant progress.