US stock futures were seen rising after the release of the August jobs report by the Bureau of Labor Statistics (BLS).
The jobs report showed an addition of 142,000 jobs, which has led to increased speculation that the Fed might implement a larger rate cut at its upcoming meeting.
The data showed that the unemployment rate had dropped to 4.2% in August, marking an end to four consecutive months of increases. Moreover the report highlighted that job growth in July was more robust than initially estimated, due to a significant upward revision.
The jobs data has influenced market expectations, with traders now pricing in a 50% chance of a half-point rate cut by the Federal Reserve in its meeting later this month, according to Bloomberg's data.
Earlier this morning, the probability for a 50bp rate cut in September was at around 35%.
The Federal Reserve's next meeting will be closely watched for any changes to its interest-rate policy, as investors and analysts look for signs of how the central bank will navigate the slowing economic environment.