By Johann M Cherian and Shashwat Chauhan
Aug 7 (Reuters) - Wall Street's main indexes were set to open higher on Friday after data showed the U.S. economy unexpectedly shed jobs last month, raising doubts about a September interest-rate hike by the Federal Reserve.
A Labor Department report showed nonfarm payrolls fell 23,000 in July, far below the 80,000 job additions that economists polled by Reuters were expecting.
Unemployment stood at 4.1% in July, easing from 4.2% in June. Average earnings on
an annual basis rose 3.2% in July, compared with the 3.5% economists expected.
"Even with a negative job print, the job market remains healthy. But it gives the Fed some room to pause in September," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.
"It has seemed like the Fed is pressing more on the inflation front, but today's numbers may reframe that conversation and put the labor side of the mandate in focus."
Money market data showed traders pared back expectations for an interest-rate hike in September, with odds of an increase now at about 20%, from 55% before the report, according to data compiled by LSEG.
Under new Chair Kevin Warsh, the U.S. central bank has offered investors little information on forward guidance regarding monetary policy, sharpening the focus on economic data and commentary from policymakers.
At 08:46 a.m. ET, Dow E-minis rose 168 points, or 0.31%, S&P 500 E-minis added 41 points, or 0.53%, and Nasdaq 100 E-minis gained 342.75 points, or 1.16%.
Collaboration software maker Atlassian jumped 32.5% in premarket trading while chip company Microchip Tech advanced 10.3% after both forecast quarterly revenue above estimates.
The results also lifted broader sectors, with chip stocks Marvell and Micron up 3.9% and 3.2%, respectively. Software stocks also rose; Palo Alto gained 2.3% and ServiceNow added 3.5%.
Cybersecurity company Cloudflare gained 15.5% after raising its full-year revenue forecast above estimates.
The main U.S. indexes were headed for strong weekly gains, with the S&P 500 and the Dow on track for their best week since April and the Nasdaq set for its biggest advance since May, if gains hold.
Better-than-expected results from AI-related companies this earnings season have propelled the Dow and the S&P 500 to fresh record highs, while helping the Nasdaq recover from a pullback that had briefly pushed it nearly 10% below its previous peak.
In a move to support domestic production, the White House imposed a series of price floors and a 15% tariff on products made from polysilicon, the raw material used in semiconductors and solar panels that is primarily produced by China.
Solar stocks also gained. First Solar was up 5% and SolarEdge climbed 2.1% following U.S. President Donald Trump's trade actions to challenge Beijing's polysilicon monopoly.
Vacation rental company Airbnb gained 7% after beating second-quarter revenue estimates, while Trade Desk dropped 29.2% after the ad-tech firm forecast third-quarter revenue below expectations.
Meanwhile, geopolitical tensions flared after Yemen's Iran-aligned Houthis attacked Saudi Arabia, while a report said Iran was reviewing a preliminary bill that would bar U.S., Israeli and other "hostile" vessels from transiting the Strait of Hormuz as well as impose fines of up to 20% of a ship's cargo value for violations.
(Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Additional reporting by Niket Nishant; Editing by Devika Syamnath and Pooja Desai)
