US stocks today: Futures pause ahead of January employment data

U.S. stock index futures were subdued on Wednesday as investors awaited crucial jobs data delayed by a partial government shutdown while keeping a close eye on corporate earnings. The employment report is expected to show an increase in U.S. job growth despite a sluggish labor market, due to tariff uncertainty ⁠ and worker restrictions amid tighter immigration enforcement.

The data could dampen expectations for the central bank’s rate cuts, with retail sales unexpectedly stagnant and the likelihood of a rate cut in April rising to 35.5% from 32.2% the day before, according to CME Group’s FedWatch tool.Markets are still pricing in the first rate cut in June, when US President Donald Trump’s Federal Reserve Chairman Kevin Warsh is expected to take charge, pending Senate approval.

Still, any surprises in the labor data or Friday’s crucial inflation data could quickly change the interest rate outlook.

At 5:08 a.m., the Dow E-minis were up 13 points, or 0.03%, the S&P 500 E-minis were down 6.5 points, or 0.09%, and the Nasdaq 100 E-minis were down 64.75 points, or 0.26%.

While quarterly results continue to grab investors’ attention, shares of cloud and network security provider Cloudflare rose 14% after a better-than-expected forecast for year-over-year and first-quarter revenue. AI-induced disruption has come under renewed scrutiny recently, with markets punishing industries and sectors expected to be affected. Following last week’s decline in software stocks, brokers came under pressure on Tuesday after startup Altruist’s AI-based tax planning features sparked concerns.

Shares of Robinhood fell 7.2% after the retail brokerage posted fourth-quarter revenue below Wall Street expectations.

Notable company results before the bell include Kraft Heinz, T-Mobile, Shopify and Humana.

The S&P 500 and the Nasdaq closed lower on Tuesday, while the Dow Jones recorded its third record in a row. Still, the benchmark S&P 500 was not far from its record high in late January.

Meanwhile, a closely divided U.S. House of Representatives on Tuesday rejected a bid by Republicans to block legislative challenges to Trump’s tariffs, a move that could allow Democrats to try to reverse the tariffs imposed on Canada. A Supreme Court ruling on the legality of the tariffs is also expected in the coming months.

In other developments, shares of Moderna fell 8.8% following a decision by the U.S. Food and Drug Administration not to review the drugmaker’s approval application for its flu vaccine.

Shares of Lyft fell 17% after the ride-hailing company’s quarterly earnings forecast, and annual ride volumes fell short of Wall Street expectations.