(Reuters) -Wall Street futures rose on Monday, stabilizing after a turbulent session as investors priced in deeper interest rate cuts by the Federal Reserve following a surprisingly soft jobs report last week.<\/p>\n
At 5:44 a.m. ET, Dow E-minis were up 294 points, or 0.67%, S&P 500 E-minis were up 43.5 points, or 0.69% and Nasdaq 100 E-minis were up 184.75 points, or 0.81%.<\/p>\n
Wall Street’s main indexes tumbled on Friday, with the S&P 500 recording its largest daily percentage decline in over two months, as new U.S. tariffs on dozens of trading partners and a much weaker-than-expected July jobs report spurred selling pressure.<\/p>\n
The data, which also showed significant downward revisions to previous months, indicated a deteriorating labor market and firmed the possibility of a rate cut in September.<\/p>\n
According to the CME FedWatch tool, the odds for a September cut stand at about 80%, up from 63.1% a week ago.<\/p>\n
The central bank’s decision to keep rates unchanged last week drew immediate criticism from Trump<\/a>, who has repeatedly threatened to fire Chair Jerome Powell, arguing that rates should be much lower than they are.<\/p>\n The Fed’s strained relationship with the White House took a dramatic turn following the announcement of Governor Adriana Kugler’s early resignation on Friday, signaling an abrupt shake-up in the Fed leadership.<\/p>\n “It is expected that whoever Trump announces to replace the governor could then become the new Chair when current Chair Powell vacates his position next May,” Kathleen Brooks, research director at XTB, said in a note.<\/p>\n Sentiment also took a turn for the worse last week after an executive order signed by Trump imposed fresh import duties<\/a> on trading partners, including Canada, Brazil, India and Taiwan, despite the countries’ attempts to secure better deals.<\/p>\n The tariffs are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.<\/p>\n U.S. factory orders data for June is due at 10:00 a.m. ET. Tuesday’s business activity report and Thursday’s jobless claims figures are the only other key economic indicators in this data-light week.<\/p>\n Atlanta Fed President Raphael Bostic will speak later in the week.<\/p>\n