US stock futures surged higher Friday following the release of unexpectedly weak July employment data showing the US economy shed jobs for the first time in months. The disappointing payroll figures triggered immediate market optimism that the Federal Reserve may accelerate its planned rate-cut timeline, with traders increasing bets on a September policy easing.

The S&P 500 futures climbed 1.2% in pre-market trading, while Nasdaq 100 contracts advanced 1.5%, reflecting investor relief that cooling labor conditions could prompt monetary policy relief. The July jobs report revealed a net loss of positions, missing economist forecasts for modest gains and pushing the unemployment rate higher.

Treasury yields retreated sharply on the news, with the 10-year yield dropping below 3.8%, amplifying the risk-on sentiment across equity markets. The dollar weakened against major peers as rate expectations shifted.

Market participants now await further inflation data and Fed commentary to confirm whether the central bank will deliver the anticipated 50 basis points of cuts by year-end, with the next policy meeting scheduled for September 17-18.