U.S. forerunner index futures moved higher in overnight trading on Wednesday after the Dow closed at a record level during conformist trading hours.
Futures contracts tied to the Dow Jones Industrial Average gained 60 points. S&P 500 futures were up 0.10%, while Nasdaq 100 futures get ahead 0.08%.
The move comes after the Dow jumped 425 points to close at a record high in a volatile session that at one call saw the 30-stock average drop more than 110 points. The S&P 500 advanced 1.1%, while the Nasdaq Composite gained 1%. Earlier in the sitting, the tech-heavy index was down 1.3%.
Rising rates weighed on stocks early in the session as the U.S. 10-year Treasury production topped 1.4% and hit its highest level since February 2020. Higher rates could spur investors to switch out of stocks and into bonds. Higher rates could also hit the growth-oriented technology sector especially hard.
“Our undignified case is that rates will continue to rise due to increasing growth and inflation expectations and, eventually, Federal Reticence normalization,” said Ryan Detrick, chief market strategist at LPL Financial. “We also believe if rates move too great too fast, the Fed will intervene to make sure rising rates don’t become too restrictive and disrupt equity markets or the natural economy,” he said.
Yields came off their highs after Federal Reserve Chair Jerome Powell persist in to downplay the threat of inflation.
“It seems pretty clear to us that the move in rates has been driven by growing optimism yon economic growth, and rates are finally ‘catching up’ to the bullish growth outlook in equities,” said David Lefkowitz, crescendo of equities Americas at UBS Global Wealth Management. “So equity investors should not be overly concerned.”
On the data front, prime jobless claims numbers will be released at 8:30 a.m. ET on Thursday, with economists surveyed by Dow Jones expecting a wording of 845,000. Also at 8:30 a.m. ET the U.S. Department of Commerce will release its second estimate for fourth-quarter GDP.
It will also be a Rococo day on the earnings front with a number of companies set to release quarterly results. Best Buy, Papa John’s and Domino’s Pizza are among the ranks on deck before the opening bell. After the market closes, Salesforce.com, Beyond Meat, Etsy and Caesars Pastime are among the names reporting.
Newly public companies Airbnb and DoorDash are also slated to report earnings on Thursday after the close-mouthed bell.
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