Following yesterday’s sell-off in the tech sector, stocks are likely to move to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.2 percent.
Traders may look to pick up tech stocks at relatively reduced levels following the steep drop on Wednesday, which saw the tech-heavy Nasdaq record its worst day since December 2022.
Optimism about the outlook for interest rates may also generate early buying interest after the Labor Department released a report showing first-time claims for U.S. unemployment benefits climbed by much more than expected in the week ended July 13th.
The Labor Department said initial jobless claims rose to 243,000, an increase of 20,000 from the previous week’s revised level of 223,000.
Economists had expected initial jobless claims to edge up to 230,000 from the 222,000 originally reported for the previous week.
Meanwhile, The Federal Reserve Bank of Philadelphia released a report on Thursday showing growth by regional manufacturing was more widespread in the month of July.
The Philly Fed said its diffusion index for current general activity jumped to 13.9 in July from 1.3 in June, with a positive reading indicating growth. Economists had expected the index to inch up to 2.9.
The report said most future activity indicators also rose, suggesting more widespread expectations for overall growth over the next six months.
The major U.S. stock indexes turned in a mixed performance on Wednesday, with geopolitical concerns and profit warning from Dutch semiconductor firm ASML rendering the mood cautious.
Among the major averages, the Dow moved reached a new record high, while the tech-heavy Nasdaq ended sharply lower.
The Dow ended with a gain of 243.60 points or 0.6 percent at 41,198.08. The S&P 500 settled with a loss of 78.93 points or 1.4 percent at 5,588.27, while the Nasdaq plunged 512.42 points or 2.8 percent to 17,996.92.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index plunged by 2.4 percent, while China’s Shanghai Composite Index climbed by 0.5 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index has advanced by 0.8 percent, the U.K.’s FTSE 100 Index is up by 0.7 percent and the German DAX Index is up by 0.3 percent.
In commodities trading, crude oil futures are edging down $0.14 to $82.71 a barrel after surging $2.09 to $82.85 a barrel on Wednesday. Meanwhile, after slipping $7.90 to $2,459.90 an ounce in the previous session, gold futures are climbing $12.20 to $2,472.10 an ounce.
On the currency front, the U.S. dollar is trading at 156.44 yen versus the 156.20 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0929 compared to yesterday’s $1.0939.
Business News
Futures Pointing To Initial Upward Move On Wall Street
2024-07-18 12:50:52
