U.S. stock futures indicated a slight rise at the open Thursday, as traders appeared to lick their wounds and avoid big bets after a big selloff at the start of the week.
The stock market is trying to stabilize but remains down sharply for the week. Analysts have pinned the recent selling in part on rising bond yields amid signs of inflation. But they have also notes that equities were due for a pullback after scoring big gains in January and throughout 2017.
What are the main benchmarks doing?
Dow Jones Industrial Average futures YMH8, -0.01% rose by 80 points, or 0.3%, to 24,815, while S&P 500 futures ESH8, -0.03% added 8.30 points, or 0.3%, to 2,676.50. Nasdaq-100 futures NQH8, +0.18% tacked on 35 points, or 0.5%, to 6,590.75.
On Wednesday, the Dow DJIA, -0.08% closed 0.1% lower, the S&P 500 SPX, -0.50% lost 0.9%, and the Nasdaq Composite COMP, -0.90% shed 0.9%.
The three gauges are down between 2.5% and 2.9% for the week as of Wednesday’s close, after tumbling Monday, rallying Tuesday and suffering modest losses Wednesday. The Dow has cut its 12-month gain to 24%.
What are strategists saying?
“While yesterday’s moves were slightly more orderly, it appears to be far from clear that the recent increase in volatility has subsided,” said Michael Hewson, chief market analyst at CMC Markets UK, in a note.
What could help drive markets?
Political worries might pressure the market somewhat, as a partial shutdown of the federal government lies ahead if lawmakers don’t agree on spending measures by midnight.
Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer unveiled an agreement Wednesday. The deal faces a bumpy path in the House, where Republicans will need Democrats’ help to pass it, since conservatives will likely object to a big increase in government spending.
What’s on the economic docket?
A report on weekly jobless claims is slated to hit at 8 a.m. Eastern Time, with economists polled by MarketWatch forecasting 235,000 claims.
Check out: MarketWatch’s Economic Calendar
The recent correction in financial markets is healthy and is unlikely to hurt financial conditions or the broader U.S. economy, Dallas Fed President Robert Kaplan said early Thursday at an event in Germany.
Three other Federal Reserve officials are scheduled to speak later: Philadelphia Fed President Patrick Harker is speaking on the economic outlook and the impact for colleges at 8 a.m. Eastern in New York City, while Minneapolis Fed President Neel Kashkari is participating in a discussion at the chamber of commerce for Pierre, S.D., at 9 a.m. Eastern
Kansas City Fed President Esther George is due to give a speech on the economic outlook to a business group in Wichita, Kan., at 9 p.m. Eastern.
Which stocks look like key movers?
Shares in Tesla Inc. TSLA, +3.30% traded slightly lower in premarket action. The maker of electric cars late Wednesday posted a narrower-than-expected adjusted loss for the fourth quarter.
What are other assets doing?
European stocks SXXP, -0.54% moved down, with U.K. stocks UKX, -0.57% lower ahead of the Bank of England’s “Super Thursday.” The central bank is due to release an inflation report and interest-rate decision. Asian markets mostly finished with gains.
Gold GCG8, -0.14% and oil futures CLH8, -0.89% are lower, as the ICE U.S. Dollar Index DXY, +0.15% gains.
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