Traders anticipate a quarter-point interest rate cut by the Federal Reserve this month following comments from Fed Governor Christopher Waller on labor market data, with a larger cut expected in November. This sentiment is supported by JPMorgan's David Kelly, who suggests a 25 basis point cut is crucial. Wall Street is closely monitoring Friday's jobs report, seen as the most consequential economic data in months, which will influence the Fed's decision on rate cuts. The job market is showing signs of cooling, with the unemployment rate expected to tick down to 4.2%. Futures and tech stocks are under pressure ahead of the report, reflecting market nervousness. Manufacturing data also points to a subdued economic environment, reinforcing expectations of an imminent rate cut.