Dow Jones futures gain as oil prices, US yields ease
Dow Jones futures gain by 0.18% to trade near 53,220 during European hours on Thursday. Meanwhile, S&P 500 futures advance by 0.16% to trade near 7,690, while Nasdaq 100 futures inch higher by 0.03% to trade around 29,200.
US stock futures advance as pressure on equities began to ease following a pause in the recent surge of oil prices and bond yields. Sentiment was further shaped by fresh economic data revealing a notable cooling in the labor market. According to ADP figures, US private-sector employment added just 38,000 jobs in August, falling short of the 47,000 positions economists had anticipated.
Despite the softer labor data, financial markets continue to price in roughly a two-thirds probability of a Federal Reserve (Fed) interest rate hike later this month. This lingering uncertainty has traders closely monitoring upcoming economic catalysts, particularly initial jobless claims and Friday’s comprehensive nonfarm payrolls report, to gain a clearer signal on the central bank's next policy move.
Futures market momentum follows a solid performance during the previous session, where Wall Street successfully snapped a three-day losing streak. On Wednesday, the Dow Jones Industrial Average rose 0.56%, the S&P 500 gained 0.46%, and the Nasdaq Composite climbed 0.45%, with market gains largely driven by strong performances in the materials, communication services, and health care sectors.
US equities find support as Mag 7 rebound led by Nvidia and Meta
According to strategists at Deutsche Bank, “US equities finally stabilised yesterday,” with the S&P 500 “(+0.46%) recovering after 3 consecutive declines.” They highlight that the move was “lifted by a decent rally for the Mag 7 (+0.76%), which in turn were lifted by Nvidia (+3.21%) and Meta (+2.47%),” underscoring the continued leadership of mega-cap technology in supporting the broader index.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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