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US Index Futures Rise, Oil Dips Slightly

Fernanda T
Latest News
April 04 2024 7:31AM

This Thursday, U.S. index futures show cautious optimism, reflecting market expectations in anticipation of payroll data. This upward movement comes a day after statements by Jerome Powell, chairman of the Federal Reserve (Fed), who reiterated the position that a reduction in interest rates will only be considered when there is a clear trend that inflation is returning to the bank’s set goal of 2%.

At 06:47 AM, the futures of the Dow Jones (DOWI:DJI) rose by 104 points, or 0.26%. The futures of the S&P 500 advanced 0.29%, and the futures of the Nasdaq-100 gained 0.40%. The yield on 10-year Treasury bonds was at 4.359%.

In the commodities market, West Texas Intermediate crude oil for May fell by 0.14%, to $85.31 per barrel. Brent crude oil for June dropped by 0.12%, near $89.24 per barrel.

On Thursday’s economic schedule, at 8:30 AM, the weekly unemployment insurance claims will be announced, with LSEG consensus expectations pointing to about 214,000 requests. At the same time, the February trade balance will also be revealed, with the same consensus forecasts indicating a deficit of $67.3 billion.

Asian markets closed higher, led by Japan’s Nikkei, which gained 0.81% thanks to financial and electronics stocks, and South Korea’s Kospi, which rose by 1.29% driven by semiconductors and automotive industries. While the Shanghai SE markets in China and the Hang Seng Index in Hong Kong remained inactive due to local holidays, Australia’s ASX 200 also saw an increase, albeit more modest, of 0.45%.

Markets in Europe show a positive trend, with investors looking to boost activities after a turbulent start to the new financial quarter. On the economic front, it is expected that the recently released minutes from the last monetary policy session of the European Central Bank (ECB) will clarify future directions regarding the possible reduction of interest rates in the eurozone.

On Wednesday, US stocks initially recovered but ended mixed, with the Dow Jones falling slightly for the third consecutive day, and the S&P 500 and Nasdaq advancing 0.11% and 0.23%, respectively. The ISM report showed a slowdown in the services sector, easing concerns about interest rates. The Fed chairman indicated caution with the interest rate. Gold and energy stocks were up, while Intel (NASDAQ:INTC) and Ulta Beauty (NASDAQ:ULTA) recorded significant losses on the day.

In terms of quarterly results, financial reports are scheduled to be presented before the market opens from Lamb Weston Holdings (NYSE:LW), Conagra Brands (NYSE:CAG), Simply Good Foods (NASDAQ:SMPL), AngioDynamics (NASDAQ:ANGO), Lindsay Corporation (NYSE:LNN), RPM International (NYSE:RPM), Radius Recycling (NASDAQ:RDUS), Collplant Biotechnologies (NASDAQ:CLGN). After the close, numbers from Kura Sushi USA (NASDAQ:KRUS) will be awaited.