US stock futures rise as weak payrolls put rate cuts back on the menu By Investing.com

Investing.com — U.S. stock index futures rose in afternoon trade on Sunday, following a strong session on Wall Street after weaker-than-expected labor data increased investors' bets on a September interest rate cut.

Some strong earnings also boosted sentiment, especially those from iPhone maker Apple, which reported a smaller-than-expected decline in revenues and profits.

The first quarter earnings season is set to continue this week, while a number of key Federal Reserve officials are also scheduled to speak, with the latter offering further signals on interest rates.

It rose 0.2% to 5,162.25 points, while it rose 0.1% to 18,019.75 points by 19:18 ET (23:18 GMT). It rose 0.2% to 38,897.0 points.

September interest rate cut bets rise after payrolls data

The lower-than-expected data, released on Friday, raised hopes that the labor market was cooling in accordance with the Federal Reserve's expectations, leading to the bank eventually cutting interest rates this year.

Traders are betting that the bank will start cutting interest rates by September, but they still maintain only a 44% probability of such a scenario, according to .

While the labor market may be showing some signs of slowing, inflation is still well above the Fed's annual target of 2%, and may delay any plans to cut the central bank's interest rates.

The focus this week is on speeches from a large number of Fed members for further signals on interest rates. Members of the Federal Open Market Committee are scheduled to speak later on Monday.

Williams warned last week that the Fed's 2% annual inflation target remains crucial.

Wall Street bears April losses, more profits are within reach

It rose 1.3 percent to 5,127.79 points on Friday. The index rose about 2% to 16,156.33 points, while the index rose 1.2% to 38,675.68 points.

While Wall Street posted a strong start to May, it was still suffering sharp losses during April, weighed down by the possibility that US interest rates will remain high for longer. Even with weak jobs data released on Friday, investors were still looking for more signs that the US economy is slowing.

Earnings season is set to continue this week, which also provides more signals for Wall Street. Uber Technologies Inc (NYSE:) and Walt Disney The company (NYSE:) is among the largest large-cap companies available.