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Futures: Dow down 0.1%, S&P 500 up 0.22%, Nasdaq 0.64%

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August nonfarm payrolls below expectations

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Broadcom ( AVGO ) up after strong AI revenue growth forecast

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Lululemon plunges after profit forecast cut

(Updates after payrolls data)

By Purvi Agarwal and Ragini Mathur

Sept 5 (Reuters) -

The S&P 500 and the Nasdaq were on track for a higher open

on Friday after weaker-than-expected August jobs data raised

investor bets on imminent Fed rate cuts, while chip major

Broadcom ( AVGO ) gained after impressive quarterly earnings.

Broadcom ( AVGO ) soared about 14% in premarket trading

after the chip designer forecast fourth-quarter revenue above

estimates and expected AI revenue growth to "improve

significantly" in fiscal-year 2026.

U.S. job growth weakened sharply in August and the

unemployment rate rose to 4.3%, confirming that labor market

conditions were softening and sealing the case for an

interest-rate cut from the Federal Reserve this month.

Traders of futures tied to the central bank's policy

rate

added

to bets that the Fed will cut interest rates in quick

succession starting this month.

CME's FedWatch Tool showed markets are now pricing in an

11% chance of a jumbo 50-basis-point cut in September.

"It shows that the labor market is stalling to the point

where we could experience negative job growth in the months

ahead and this is due to uncertainties over tariffs," said Peter

Cardillo, chief market economist at Spartan Capital Securities.

"This perhaps raises speculation that the Fed could cut

(borrowing costs) by 50 basis points in September."

At 08:44 a.m. ET, Dow E-minis fell 45 points, or

0.1%, S&P 500 E-minis rose 14.25 points, or 0.22%, and

Nasdaq 100 E-minis added 152.5 points, or 0.64%.

Broadcom's ( AVGO ) results gave respite to investors who were

unimpressed by Nvidia's ( NVDA ) quarterly results last week and

concerned after the lofty valuations of AI-related firms briefly

paused Wall Street's rally last month.

On the other hand, Lululemon Athletica ( LULU ) plunged

19.7% after the yogawear-maker slashed its annual profit

forecast the second time in a row, dragging larger rival Nike ( NKE )

down 1.2%.

Despite the anticipation around payrolls, the S&P 500 closed

at a record high on Thursday, with the Nasdaq and the Dow also

finishing higher as rate-cut hopes remained intact after a slew

of economic indicators.

The benchmark index is within touching distance of an

intraday record high set on August 28.

Wall Street's three main indexes were on track for gains in

the first week of September. The S&P 500 has lost 1.5% on

average in September since 2000, according to LSEG data, making

it the worst month historically for U.S. equities.

In other moves, Tesla added to gains and was last

up 2.1% after the EV-maker proposed an about $1-trillion

compensation package for top boss Elon Musk, subject to

achieving lofty performance targets.

Samsara advanced 13% after the software firm beat

second-quarter revenue expectations.

Cryptocurrency stocks rose as bitcoin prices hit a

more than one-week high. Strategy was up 2.8% and

Coinbase and Riot Platforms ( RIOT ) gained 1.8% each.