Definition
A contract to buy or sell something at a set price on a set future date, traded on an exchange. A futures price isn't a forecast; it's today's price plus the cost of waiting until delivery.
The story
A farmer and a baker agree in spring on a price for wheat delivered in the fall, so neither gets surprised. Stock index futures like ES (E-mini S&P 500 futures) and NQ (E-mini Nasdaq-100 futures) work on the same idea, and they trade nearly around the clock. So when the jobs report hits at 7:30 AM CT (Central Time), futures react right away, an hour before the stock market opens at 8:30.
Why markets watch it
Futures show the first reaction to news, day or night.
See it in the story
Connects to
Jobs reportE-mini S&P 500E-mini Nasdaq-100Gold futuresContangoLeveragePoint valueMicro futures
Last seen in
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms