Investing.com - U.S. stock markets pointed to more gains at the open on Monday, with the S&P 500 and Nasdaq on track to hit fresh record highs as sentiment was underpinned by a stronger-than-expected U.S. jobs report released Friday.
The blue-chip Dow futures tacked on 36 points, or 0.2%, by 10:53GMT, or 6:53AM ET, the S&P 500 futures inched up 4 points, or 0.18%, while the tech-heavy Nasdaq 100 futures advanced 13 points, or 0.26%.
U.S. stocks notched their best day in a month on Friday, with the S&P 500 and Nasdaq closing at record highs after data showed the U.S. added 255,000 jobs last month, beating forecasts and bolstering expectations of faster economic growth.
The upbeat jobs figure reignited speculation that the Federal Reserve will lift interest rates by the end of this year. Fed funds futures are currently pricing in a 15% chance of a rate hike by September. December odds were at around 44%, up from 33% ahead of the report.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, touched a one-week high of 96.50 in wake of the jobs report on Friday. It was at 96.25 early Monday.
No major economic data is due from the U.S. on Monday.
Meanwhile, second quarter earnings season begins to wind down this week. Stocks set to report before Monday's opening bell include Tyson Foods (NYSE:TSN), Dean Foods (NYSE:DF), Sotheby’s (NYSE:BID) and Allergan (NYSE:AGN_pa), while News Corp (NASDAQ:NWSA) is due after the bell.
Among active pre-market movers, Mattress Firm Holding (NASDAQ:MFRM) soared more than 110% after South African furniture retailer Steinhoff International Holdings (JO:SNHJ) agreed to purchase the company for around $2.4 billion in cash. The bid, worth $64 per share, represents a 114% premium over Mattress Firm’s Friday closing price.
Wal-Mart Stores (NYSE:WMT) tacked on 0.5%. The retailer is expected to announce a $3 billion deal to buy online retailer Jet.com later on Monday, according to various media reports, citing sources.
On the downside, Delta Air Lines (NYSE:DAL) dropped more than 4% after the airliner said a system-wide computer failure delayed hundreds of flights around the world.
Elsewhere, European stock markets traded close to a two-week high on Monday, as a rally by bank shares lifted sentiment.
Earlier, Asian shares rose broadly, as investors focused on upbeat prospects for the U.S. economy, while shrugging off weak Chinese trade data.
Exports slumped 4.4% from a year earlier, worse than forecasts for a decline of 3.0%, while imports dropped 12.5%, compared to expectations for a fall of 7.0%. That left China with a surplus of $52.3 billion last month, the General Administration of Customs said.
In the commodities space, oil prices rallied more than 1% on Monday, as renewed hopes for an agreement among exporters to freeze output underpinned the market.
However, Russian Energy Minister Alexander Novak said earlier that he sees no grounds for new talks on freezing production yet, but is open to negotiations.
Gold, on the other hand, sank to a one-week low amid resurgent expectations of a U.S. interest rate hike by the end of this year.
The yellow metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.