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    European equities opened positively, showing a mild recovery in US futures after recent job report uncertainties.

    by VT Markets
    /
    Sep 8, 2025
    European stocks are starting the week on a positive note. Similarly, US futures are up, with S&P 500 futures gaining 0.2% today. Last Friday, the stock market faced uncertainty after a disappointing US jobs report. However, some late buying helped recover some losses, a trend that continues into this week.

    Slight Rebound

    We’re seeing a slight bounce as the market reacts to last Friday’s news. The jobs report indicated that non-farm payrolls were only 110,000, far less than the expected 180,000. This has led traders to expect a more relaxed approach from the Federal Reserve, shifting attention from inflation worries to possible economic slowing. This uncertainty is evident in the VIX, which has climbed to about 19, even as stocks rise. This means traders are seeking protection against a possible drop while also wanting to join in on a rally. One approach to navigate this uncertain market is through options strategies like collars, which involve buying a protective put and selling a call option. Now, everyone is focused on the inflation data set to be released on September 17th. If the Consumer Price Index shows lower inflation, it may strengthen the belief that the Fed will keep rates steady at its next meeting. We are also seeing more activity in options that expire right after that date, anticipating possible price movements.

    Looking Back To 2023

    This situation reminds us of late 2023 when weaker economic data fueled a strong rally in equities as the year ended. Traders who bought call options on the S&P 500 during that time saw great gains. Many are now positioning for a similar outcome, though they’re wary of unexpected changes. A significant shift is occurring in interest rate futures too. The likelihood of a Fed rate cut by early 2026, according to the futures market, has risen from 40% to over 65% since last week’s report. This indicates that betting on lower rates lasting longer could be a smart move. Create your live VT Markets account and start trading now.

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