Nasdaq futures jump 100 points: 5 things to know before Wall Street opens

• July nonfarm payrolls dropped by 23,000 with prior months revised lower by 103,000 combined, pushing September rate hike probability to approximately 44%
• JPMorgan raised its S&P 500 target to 8,000 from 7,800, citing strong earnings momentum with 86% of reporting companies beating estimates and robust AI infrastructure spending translating to revenue
• Brent crude remained near $84 due to continued Strait of Hormuz restrictions, creating persistent inflation risk that could complicate Fed decisions despite weakening labor market

Market Summary: Nasdaq Futures Rise Ahead of Key Inflation Data

Market Movement:

Nasdaq 100 futures jumped approximately 100 points (0.3%-0.4%) in pre-market trading Monday, while S&P 500 contracts gained 0.1% and Dow futures dipped slightly. The bullish sentiment reflects reduced Federal Reserve rate hike expectations following weak employment data.

Key Economic Data:

July nonfarm payrolls fell by 23,000, with May and June figures revised down by a combined 103,000 jobs. The unemployment rate held near 4.1%. This weakness pushed the probability of a September Fed rate increase to just 44%. Critical CPI data releases Wednesday at 8:30 AM ET, followed by PPI data Thursday, will be decisive for policy direction.

Energy Markets:

Brent crude traded near $84 per barrel as the Strait of Hormuz remains largely restricted pending Iran-Oman diplomatic negotiations. Constrained oil flows continue to pose inflation risks despite weaker labor market data.

Corporate Earnings:

86% of S&P 500 companies beat Q2 earnings estimates, with 76% exceeding revenue forecasts. JPMorgan raised its S&P 500 target to 8,000 from 7,800 and boosted its 2026 earnings forecast to $365 per share, citing strong AI infrastructure investment translating into revenue growth.

Notable Movers:

SpaceX rose 3% pre-market after surging 15.8% Friday. Key AI-related earnings ahead include CoreWeave (Tuesday), Cisco (Wednesday), and Applied Materials (Thursday).

Political Developments:

The Senate approved temporary federal funding through December 11, reducing shutdown risks past November midterms, though House approval is still pending.

Market Implications:

The setup favors continued rally in growth stocks, contingent on benign Wednesday inflation data confirming the dovish Fed pivot.