U.S. equity futures were little changed on Friday as market participants awaited the August nonfarm payrolls report, a release that could shape expectations for Federal Reserve policy. Traders were also parsing remarks from Fed Governor Christopher Waller, which reduced some immediate fears about another near-term interest-rate increase.
S&P 500 futures edged down to 7,752.25 points, while Nasdaq 100 futures were largely unchanged. The calm in overnight futures followed a constructive session on Wall Street and reflected caution ahead of the payrolls print, a labor-market snapshot that investors consider one of the most consequential data points for interest-rate expectations.
The jobs report has outsized market importance because a stronger-than-expected reading could give the Fed more room to keep policy tight, whereas a softer employment outcome could bolster arguments for holding rates steady or eventually reducing them. That prospect hung over markets as investors awaited updated labor-market data.
Waller’s comments temper rate-hike expectations
Market pricing around interest rates shifted after Fed Governor Christopher Waller said recent data showed encouraging signs of disinflation. Waller added that if upcoming releases continue to indicate cooling inflation, he would favor keeping interest rates unchanged at the Fed’s Sept. 15-16 policy meeting. His remarks echoed a cautious stance from New York Fed President John Williams, who has urged a wait-and-see approach.
Following those comments, markets reduced the probability of a 25-basis-point rate increase this month to roughly 50% from almost 65% previously. Expectations for interest rates remain a key determinant of equity valuations: greater confidence that the Fed will pause can relieve pressure on technology and other rate-sensitive sectors. Friday’s payrolls print presented a potential catalyst to either reinforce that shift or reverse it.
Lululemon trims guidance, shares plunge
Lululemon Athletica cut its full-year outlook again and reported quarterly sales that missed analysts’ expectations, prompting an abrupt market reaction. The athleisure retailer’s stock dropped about 18% in after-hours trading following the announcement.
The weak results and the new revision intensified scrutiny on the company’s leadership transition. Incoming CEO Heidi O’Neill faces the task of revitalizing the brand and recapturing shoppers who have migrated to newer alternatives in the athleticwear space. Management said the company is working to refresh its product assortment as it seeks to regain momentum in an increasingly competitive market.
The warning from Lululemon underscores that established consumer names can see their performance deteriorate when shoppers encounter more alternatives. Investors will be watching whether the product refresh and any demand-rebuilding efforts can restore sales growth and stabilize margins.
Adobe appoints Anil Chakravarthy as CEO
Adobe announced that Anil Chakravarthy, currently president of its Customer Experience Orchestration business and worldwide field operations, will become the company’s next president and chief executive officer. Chakravarthy will assume the CEO role on Dec. 1 and will join Adobe’s board. Longtime CEO Shantanu Narayen will transition to executive chair and work with Chakravarthy during the handover.
The leadership change occurs as Adobe seeks to accelerate growth by more tightly integrating artificial intelligence across its creativity, productivity and customer-experience offerings. Chakravarthy said he would focus on the next era of "agentic software," signaling an emphasis on AI-driven capabilities within Adobe’s product suite. Investors will monitor whether the management shift helps the company more rapidly convert its large installed base and AI investments into higher top-line growth.
OpenAI launches GPT-6 Astra amid intensifying AI competition
OpenAI rolled out GPT-6 Astra, initially granting daybreak access to enterprise customers before making the model available to a broader set of users including Plus, Pro, Business and Enterprise tiers. The model will also be accessible through the OpenAI API and via AWS. OpenAI set standard API pricing at $10 per million input tokens and $50 per million output tokens.
The debut comes as AI competition heats up, with companies racing to enhance model capabilities and expand commercial use. New models influence investor thinking because they can affect demand for cloud computing, data-center capacity, semiconductors and software. More capable models could raise infrastructure spending, while pricing and competition dynamics could weigh on vendor margins.
What to watch next
- Friday’s U.S. nonfarm payrolls report, which could shift expectations for Fed policy.
- Market reaction to Lululemon’s outlook cut, and any additional commentary from company management on product refresh and demand trends.
- Early customer response to Adobe’s leadership change and OpenAI’s GPT-6 Astra rollout, and how those developments influence spending in tech infrastructure.
The combination of macro data and corporate headlines set the near-term agenda for investors, with the labor-market read likely to be the dominant force determining both rate expectations and sector performance.