LIVE MARKETS-Nasdaq, S&P 500 eminis higher, but trim gains after payrolls

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NASDAQ, S&P 500 EMINIS HIGHER, BUT TRIM GAINS AFTER PAYROLLS

Nasdaq and S&P 500 eminis are higher in early trading on Friday, but pared gains after data showing stronger-than-expected job gains last month, which boosted expectations for an interest rate hike in December.

Traders added to bets that the Federal Reserve will deliver a second rate hike in December after the US government report, which showed the unemployment rate ticked down to 4.1% and employers added 165,000 jobs, more than twice what economists had anticipated. Rate futures are now pricing about an 80% probability of a quarter-point rate increase next month.

The move in stock index futures follows a sharp selloff in stocks on Thursday, with the Nasdaq .IXIC notching its deepest one-day drop in 19 months and confirming it was in a correction, amid concern over tougher AI regulation after Democrats won control of the US Congress.

Dow futures are lower early on Friday.

Here is the early market snapshot:

(Caroline Valetkevitch)

EARLIER ON LIVE MARKETS:

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