US futures tread water ahead of key jobs data, after debt ceiling deal boosts stocks

US futures tread water ahead of key jobs data, after debt ceiling deal boosts stocks

US futures struggled for direction on Friday, after stocks rose sharply the previous day when Republicans and Democrats struck a deal to raise the debt ceiling into December. Investors were waiting for the monthly US nonfarm payrolls data, due Friday. Unemployment is expected to fall, boosting the chances that the Federal Reserve will start cutting back support for the economy in November. were down 0.16%, while were 0.12% lower. Futures for the tech-heavy were down 0.26%. European stocks slipped, with the continent-wide down 0.46%. In Asia overnight, China's climbed 1.31% after reopening from a holiday, while Japan's rose 1.34%. Investors were cheered by the Senate deal to , averting the possibility of the country defaulting on its debts. However, the extension only lasts until December, setting up another fight. "Together with [Treasury Secretary] Janet Yellen, investors breathed a sigh of relief on Thursday," Chris Scicluna, head of research at Daiwa Capital Markets, said. The debt deal, along with a fall in US weekly jobless claims on Thursday, helped push up bond yields, as investors bet that an improving labor market would cause the Fed to start "tapering" its asset purchases soon. The yield on the was up 2.5 basis points