S&P 500, Nasdaq set for lower open after mixed labor market data
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ISM non-manufacturing survey scheduled for 10 a.m. ET
Tesla rises on plans to launch full self-driving software
JetBlue jumps after Q3 revenue forecast hike
Futures: Dow flat, S&P 500 down 0.18%, Nasdaq down 0.46%
Updated at 08:45 a.m. ET/1245 GMT
By Johann M Cherian and Purvi Agarwal
Sept 5 (Reuters) -The S&P 500 and the Nasdaq were set to open lower on Thursday as investors parsed mixed labor market data to gauge the size of the Federal Reserve's interest rate cut that is expected later this month.
A Labor Department report showed the number of Americans filing new applications for unemployment benefits came in at 227,000 for the week ended Aug. 31, lower than estimates of 230,000 as per economists polled by Reuters.
On the flip side, ADP National Employment data showed private employers hired the fewest number of workers in 3-1/2 years in August and data for the prior month was revised lower.
Focus will now be on Friday's official nonfarm payrolls for the month of August.
Rate-sensitive megacap growth stocks such as Nvidia NVDA.O dropped 1.4%, while Microsoft MSFT.O and Apple AAPL.O lost more than 0.5% each following the data.
Traders' bets for a 25-basis point reduction in interest rates at the Fed's September meeting now stand at 55%, according to the CME Group's FedWatch Tool. Bets for a larger 50-bps cut rose to 45% from 34% a week earlier.
"ADP coming in well below consensus is concerning and you're seeing the odds of a 50 bps cut rise, which is definitely ramping up growth scare fears in the market," Ross Mayfield, investment strategist at Baird, said.
September has been historically weak for U.S. equities, with the benchmark S&P 500 down about 1.2% for the month on average since 1928. The index is down more than 2% so far this week and tech stocks .SPLRCT have fallen nearly 5%.
Late on Wednesday, voting member and San Francisco Fed President Mary Daly said lower borrowing costs were needed for a healthy labor market.
The Institute for Supply Management survey, due at 10 a.m. ET, is expected to show non-manufacturing activity in August stood at 51.1.
At 08:45 a.m. ET, Dow E-minis 1YMcv1 were down 10 points, or 0.02%, S&P 500 E-minis EScv1 were down 10 points, or 0.18%, and Nasdaq 100 E-minis NQcv1 were down 87 points, or 0.46%.
Tesla TSLA.O rose 2.5% after the electric-vehicle maker said it will launch the full self-driving advanced driver assistance software in the first quarter next year in Europe and China, pending regulatory approval.
C3.ai AI.N tumbled 19% after the AI software firm missed quarterly subscription revenue estimates.
Frontier Communications FYBR.O dropped 9% after Verizon VZ.N said it would buy the company in an all-cash deal worth $20 billion.
JetBlue Airways JBLU.O jumped 4.3% after the carrier raised its third-quarter revenue forecast.
Leading up to the U.S. presidential elections, Goldman Sachs analysts said Democratic presidential candidate Kamala Harris' proposed corporate tax hike could lower earnings for companies on the S&P 500 index by about 5%, while Republican candidate Donald Trump's proposed relief would boost earnings by about 4%.
Reporting by Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta
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