U.S. futures are rebounding from Thursday's tech-driven sell-off, as investors digest the recently-released, and strong, Employment Situation Report for December.
The S&P 500 futures trade 32 points, or 1.3%, above fair value.
Nonfarm payrolls increased 312,000, exceeding the Briefing.com consensus of 180,000. Nonfarm private payrolls rose by 301,000 while the Briefing.com consensus expected an increase of 175,000.
As for average hourly earnings, they increased 0.4% (Briefing.com consensus +0.3%), while the previous month's increase was unrevised at 0.2%. The average workweek was reported at 34.5 (Briefing.com consensus 34.5), and the unemployment rate increased to 3.9% in December (Briefing.com consensus 3.7%) from 3.7% in November due to an uptick in the labor force participation rate (to 63.1% from 62.9%).
The key takeaway from the report is that employment data are unlikely to deter the Federal Reserve from its tightening path, especially if average hourly earnings growth remains on its current trajectory.
Investors will now turn their attention to Fed Chair Jerome Powell's participation in a panel discussion at 10:15 a.m. ET for any indication on the future path of money policy. Mr. Powell will join former Fed Chairs Janet Yellen and Ben Bernanke at the American Economic Association and Allied Social Science Association 2019 Annual Meeting.
U.S. Treasuries are cooling down from a hot streak, pushing yields notably higher. The Fed-sensitive 2-yr yield is up eight basis points to 2.46%, and the benchmark 10-yr yield is up seven basis points to 2.62%. The U.S. Dollar Index is up 0.2% to 96.46.
In corporate news, building materials company RPM Inc (RPM 51.33, -3.55) is down 6.5% in pre-market trading after it missed top and bottom line estimates.
Overseas, global markets received an adrenaline boost after China announced plans to cut its reserve requirement ratio by a total of 100 basis points in two separate cuts. This announcement was made after the conclusion of the Asian session. Separately, China's Commerce Ministry confirmed that trade talks between the U.S. and Beijing will take place Monday and Tuesday in China.