Pre-Market | Jobless Claims Hint at Labor Market Softness as Fed Eyes Rate Cuts

29 Aug., U.S. initial jobless claims were 229K versus 230K expected, indicating potential labor market softness. Federal Reserve Governor Waller reiterated support for imminent rate cuts, stating tariffs do not drive inflation, with markets pricing an 86.2% probability for a September reduction. The declining unemployment data reinforced expectations of monetary easing amid signs of economic cooling. Meanwhile, DOW FUTURES down 0.32% in pre-market, NASDAQ FUTURES down 0.52% in pre-market, S&P FUTURES down 0.29% in pre-market.

In pre-market trading, Alibaba (BABA) shares rose over 3.40%, driven by the sustained triple-digit revenue growth in AI-related cloud products for eight consecutive quarters. Chubb (CB) saw a 2.54% increase, bolstered by positive earnings estimate revisions that boosted investor confidence. Meanwhile, Caterpillar (CAT) dropped over 2.87% as investors reacted to the company's raised estimate of tariff costs. Banco Santander (SAN) also faced a decline, falling over 2.48% after being downgraded by Kepler Capital Markets from strong-buy to hold.

In pre-market trading, Movano surged over 61%, buoyed by Nasdaq's approval to maintain its listing. SMX also saw a significant rise of over 54%, driven by a strategic partnership with A*STAR for a plastic circularity platform, unlocking substantial market potential. Meanwhile, CaliberCos experienced a sharp decline of over 25%, following a reported 38% decrease in sales. TNF Pharmaceuticals also dropped over 22%, announcing a reverse stock split to improve its stock structure.

Alibaba reported a 10% year-over-year revenue increase and 76% net profit growth in its latest quarter, driven by AI-related products achieving triple-digit growth for eight consecutive quarters, alongside plans for significant investments in artificial intelligence and cloud infrastructure. Meta announced a collaboration with Reliance Industries to provide open-source AI models to businesses in India. Federal Reserve officials indicated a heightened likelihood of interest rate cuts, with market pricing showing an 86.2% probability of a September reduction, contributing to recent gains in gold prices.