U.S. stock index futures steady amid rate caution

S&P 500 Futures dropped slightly to 7,752.25 points, Nasdaq 100 Futures declined 0.07% to 29,503.50 points, and Dow Jones Futures were flat at 53,737.0 points

U.S. stock index futures steadied on Thursday evening as caution over interest rates persisted ahead of key nonfarm payrolls data due on Friday.

Futures steadied following a positive session on Wall Street, as comments from Federal Reserve Governor Christopher Waller helped cool some concerns that interest rate hikes were imminent.

S&P 500 Futures dropped slightly to 7,752.25 points by 23:20 GMT. Nasdaq 100 Futures declined 0.07% to 29,503.50 points, and Dow Jones Futures were flat at 53,737.0 points.

Among major aftermarket movers, Lululemon Athletica Inc slipped 18% after cutting its annual guidance. Adobe Systems Incorporated dropped 1.5% after stating that insider Anil Chakravarthy will take over as President and CEO from December.

Focus now turns squarely to upcoming nonfarm payrolls data, due on Friday morning, for more cues on the economy and interest rates.

Inflation and employment are the Fed’s two biggest considerations to adjust rates. Inflation has remained well above the central bank’s 2% annual target, with Chair Kevin Warsh recently reiterating that the bank remained committed to bringing down price pressures.

Wall Street indexes clocked strong gains on Thursday, aided by a sharp drop in Treasury yields after Waller downplayed expectations for imminent interest rate hikes.

Waller said he saw some signs of disinflation, and that a continuation in the trend furthers the case for a Fed hold.

Markets sharply pared bets on a September rate hike following his comments. Traders are now pricing in a 50.4% chance for a September hike, compared to a 60.1% chance just a day ago, CME Fedwatch showed.