Odds of a 50 basis point cut dropped to 0% from 53% last week after the strong September jobs report, according to the CME FedWatch Tool.

In a statement on Thursday, the International Longshoremen’s Association said it had reached a tentative agreement on wages that would see its 35,000 members resume work at ports across the U.S. East and Gulf coasts, before returning to the negotiating table on Jan. 15 2025.

Friday’s report capped a week of mostly encouraging data on the job market, including an update indicating layoffs remain relatively low. Such strength helps allay one of Wall Street’s top questions: whether the job market will continue to hold up after the Federal Reserve earlier kept interest rates at a two-decade high.

"On the face of this the Fed should be hiking rates with these sorts of figures, not cutting rates," Economist James Knightley said.

The September job report "should put to rest – at least for the next month – the idea that the economy is about to fall off a cliff or that imminent doom is on the horizon," says Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

S&P 500 futures are down 0.4%. Dow Jones Industrial Average futures are falling 0.4%. Nasdaq 100 futures are slipping 0.6%.

U.S. stocks closed higher after a surprisingly strong U.S. jobs report raised optimism about the economy. The S&P 500 added 0.9% Friday and neared its all-time high set on Monday.

Indexes edged lower Thursday as investors took in an uptick in jobless claims and simmering tensions in the Middle East. A key jobs report is due Friday.

Indexes fell Thursday on rising risks to oil supplies amid escalating Middle East tensions and as traders braced for Friday's labor market update.