The customary weekly jobless claims report is expected to show that the number of individuals claiming unemployment benefits rose to 222,000 in the week ended Sept. 27 from 218,000 in the previous week.
Trading in U.S. index futures early Thursday suggested that stocks might open mostly higher, with investors seemingly shrugging off concerns related to the government shutdown. That said, the underlying mood is likely to remain cautious until the funding crisis is resolved and the Federal Reserve’s rate trajectory is known with certainty.
Tesla, Inc. (TSLA) stock could be on investors’ watchlist following its four-session winning streak, especially as the electric-vehicle maker is set to report its third-quarter deliveries.
As of 3 a.m. ET on Thursday, the S&P 500, Nasdaq 100 and Russell 2000 futures rose 0.07%, 0.19% and 0.08%, respectively, while the Dow futures were down 0.05%.
Commenting on the shutdown, Morgan Stanley’s Global Head of Fixed Income Research and Public Policy Strategy Michael Zezas said, “The average shutdown lasts only a few days, and the net market effects tend to be muted.” “This time around, however, there could be a wrinkle as the Trump administration is talking about permanently laying off employees during the shutdown.”
The heightened economic uncertainty, a consequence of the shutdown, could amplify the volatility by pricing in the risk of not getting economic data, Zezas said.
Getting off to a strong start to October, a seasonally weaker month, the S&P 500 Index, the Dow Jones Industrial Average, and the big-tech Nasdaq 100 Index all closed at new highs on Wednesday, while the Nasdaq Composite Index, despite rising, failed to breach its previous high.
Healthcare stocks jumped for a second straight session on President Donald Trump’s plan for the sector. Utility, IT, and consumer discretionary stocks also advanced, while financial, material, and communication services stocks closed in the red.
The SPDR S&P 500 ETF (SPY), an exchange-traded fund (ETF) that tracks the S&P 500 Index, and the Invesco QQQ Trust (QQQ) rose 0.34% and 0.48%, respectively. The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Shares Russell 2000 ETF (IWM) gained 0.11% and 0.24%, respectively.
On the economic front, traders are likely to focus on the customary weekly jobless claims report, which is expected to show the number of individuals claiming unemployment benefits rising to 222,000 in the week ended Sept. 27 from 218,000 in the previous week. The spotlight is also on a speech by Dallas Fed’s Lorie Logan.
AngioDynamics (ANGO) is scheduled to report its quarterly results before the market opens on Thursday.
Crude oil futures rose early Thursday, tacking on to their gains in the previous session, while gold futures were barely up, although off their peak. After falling sharply on Wednesday, dragged by the weak ADP data and the government shutdown, the 10-year U.S. Treasury note yield edged up. The U.S. dollar was slightly weaker against its major counterparts.
The major Asian markets closed higher on the momentum imparted by tech stocks. Samsung and Hynix shares rallied strongly on the Korean exchange after artificial intelligence (AI) startup OpenAI roped in the companies in the Stargate project to advance AI infrastructure. The KOSPI hit a record high, thanks to the tech-led rally. The yen’s retreat helped a rebound in Japanese stocks. Meanwhile, the Chinese market was on an extended break until October 8 due to the National Day holiday.
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