Aug 4 (Reuters) - Wall Street's main indexes were poised for a higher open on Monday after a sharp pullback in the previous session, as markets priced in prospects of deeper rate cuts by the Federal Reserve following a surprisingly soft jobs report.
A weaker-than-expected July jobs report sent the S&P 500 (.SPX), tumbling to its steepest intraday loss in more than two months on Friday.
The bleak data, which showed downward revisions for May and June, suggested a sharp deterioration in the labor market and allowed traders to bet on multiple rate cuts this year.
According to the CME FedWatch tool, traders now see an 87.5% chance of a September rate cut, up from just 63.1% a week ago. For the year, markets are betting on at least two quarter-point cuts, about 60 basis points. 0#USDIRPR
At 8:19 a.m. ET, S&P 500 E-minis were up 34.5 points, or 0.55%, Nasdaq 100 E-minis were up 171.75 points, or 0.75%, and Dow E-minis were up 205 points, or 0.47%.
The central bank's decision to keep rates unchanged last week drew immediate criticism from President Donald Trump, who has repeatedly threatened to fire Chair Jerome Powell, arguing that rates should be much lower than they are.
Further underscoring uncertainty, the surprise resignation of Fed Governor Adriana Kugler could allow Trump to reshape the central bank's leadership to better align with his policy views.
"If we get to a point where Jerome Powell was pushed out earlier than he's expected to go anywhere, that is going to unsettle markets, and that is possibly the pill that they won't swallow," said Danni Hewson, head of financial analysis at AJ Bell.
Meanwhile, sentiment was also strained after Trump signed executive orders slapping fresh import duties on countries like Canada, Brazil, India, and Taiwan despite their efforts to negotiate better terms.
In premarket trading, Tesla (TSLA.O), rose 2.3% after granting CEO Elon Musk 96 million shares worth about $29 billion.
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.
Atlanta Fed President Raphael Bostic will speak later in the week.
After a big week for Big Tech earnings, companies from various sectors, including Palantir (PLTR.O), Eli Lilly (LLY.N), and Disney (DIS.N), will report this week.
Of the 330 S&P 500 companies that have reported earnings as of Friday, 80.6% have surpassed analyst expectations, the highest beat rate since the third quarter of 2023, according to data compiled by LSEG I/B/E/S.
Among early movers, Joby Aviation (JOBY.N), rose 5.7% after Bloomberg News reported that the company was exploring the acquisition of helicopter ride-share operator Blade Air Mobility (BLDE.O), opens new tab. Blade Air's shares surged 27.2%.
Chemours (CC.N), rose 8.2% after reaching an agreement with New Jersey to resolve all environmental claims.
Spotify (SPOT.N), gained 5.2% as the music streaming platform announced plans to raise the monthly price of its premium individual subscription in select markets from September.
Reporting by Nikhil Sharma and Pranav Kashyapin Bengaluru; Editing by Maju Samuel
