U.S. Index Futures Dip, Bank of England Holds Interest Rates at 5.25%

U.S. index futures are trading lower in pre-market trading on Thursday, halting momentum after the Dow Jones had closed higher for six consecutive sessions, the longest winning streak of 2024 for the index so far.

As of 7:05 AM, Dow Jones futures (DOWI:DJI) fell 81 points, or -0.21%. S&P 500 futures fell -0.20%, and Nasdaq-100 futures lost -0.25%. The yield on 10-year Treasury bonds stood at 4.512%.

In the commodities market, West Texas Intermediate crude for June rose 0.87%, to $79.68 per barrel. Brent crude for July rose 0.78%, near $84.23 per barrel. Iron ore traded on the Dalian exchange fell 1.65%, to $119.76 per metric ton.

On the economic agenda for this Thursday, the release of unemployment insurance claims for the week ended last Saturday is scheduled for 8:30 AM by the Department of Labor.

European markets are showing mixed performance in today’s session. The Bank of England kept interest rates at 5.25% after the May meeting, with a 7-2 vote against reduction. Despite signs of persistent inflation, the market expects cuts starting in June, and three or more cuts in 2024, in response to the forecast drop in inflation due to reduced energy prices.

Stock markets in Asia and the Pacific closed mixed. In mainland China and Hong Kong, the markets recorded notable gains, driven by a surprisingly positive performance in China’s foreign trade. The real estate and semiconductor sectors played a crucial role in this rise, benefiting from the strength of recent economic indicators. Specifically, China’s exports in April showed an annual growth of 1.5%, a result that exceeded expectations, especially after a significant drop in the previous month. Additionally, an 8.4% increase in imports signaled a more robust domestic demand than expected. In contrast, the Nikkei in Japan and the Kospi in South Korea ended the day with losses of -0.34% and -1.20%, respectively.

Wall Street exhibited mixed performance on Wednesday. While the Dow Jones advanced 0.44% for the sixth consecutive day, reaching its highest level in more than a month, the S&P 500 closed flat while the Nasdaq fell 0.18%. The president of the Minneapolis Federal Reserve, Neel Kashkari, contributed to the instability by suggesting that interest rates might remain high for an extended period. However, the expectation is still for a possible rate cut in the third quarter, with the CME Group’s FedWatch tool currently indicating an 83.5% chance that rates will be lower by September.

Scheduled to present quarterly reports before the market opens are Roblox (NYSE:RBLX), Warner Bros Discovery (NASDAQ:WBD), Viatris (NASDAQ:VTRS), Canadian Solar (NASDAQ:CSIQ), Cronos Group (NASDAQ:CRON), Sundial (NASDAQ:SNDL), Constellation Energy (NASDAQ:CEG), Plug Power (NASDAQ:PLUG), GigaCloud Technology (NASDAQ:GCT), Medical Property Trust (NYSE:MPW), among others.

After the close, the numbers from Unity Software (NYSE:U), CleanSpark (NASDAQ:CLSK), SoundHound (NASDAQ:SOUN), Marathon Digital (NASDAQ:MARA), Vuzix (NASDAQ:VUZI), RCI Hospitality Holdings (NASDAQ:RICK), Blink (NASDAQ:BLNK), ADMA Biologics (NASDAQ:ADMA), Indie Semiconductor (NASDAQ:INDI), CaliberCos (NASDAQ:CWD), and more will be awaited.