Key points
- US stock futures showed mixed signals Thursday morning, with Dow Jones, S&P 500, and Nasdaq Futures slightly down.
- Investors anxiously await weekly jobless claims data for clues on future Federal Reserve policy.
- Concerns over a potential government shutdown are adding to market uncertainty.
- Accenture and Jabil Circuit are among the companies releasing earnings reports. Oil prices fell, retreating from recent highs despite concerns about supply.
US stock futures traded near a flat line Thursday morning as investors remained cautious, awaiting key economic data that could influence the Federal Reserve’s next moves. At 7:30 AM (ET), the S&P 500 is currently at $6,637.98, showing a slight decrease of 0.28%. Similarly, the Nasdaq 100 is valued at $24,503.57, representing a 0.31% decline. The Dow 30 is also down, trading at $46,121.29 with a loss of 0.37%. These figures indicate a general downward trend across these major indices.
This follows a second consecutive day of losses for major Wall Street indices, with technology stocks leading the retreat amid concerns over valuation and uncertainty surrounding the Fed’s actions. Fed Chair Jerome Powell’s recent comments highlighting the absence of a risk-free path for monetary policy have contributed to the market’s apprehension.
The upcoming release of weekly jobless claims is a focal point for investors. This data is crucial, as it provides insight into the health of the labor market —a key consideration for the Fed in determining future interest rate adjustments. This concern is amplified by Powell’s acknowledgment of a potentially weakening labor market and rising layoffs.
Adding to the economic data releases, investors also anticipate the final reading of second-quarter US GDP later Thursday, followed by the personal consumption expenditures price index (PCE) on Friday, the Fed’s preferred inflation gauge.
Further fueling market uncertainty is the looming threat of a partial government shutdown. Lawmakers remain deadlocked on a funding agreement, creating apprehension amongst investors. The Senate’s rejection of a Republican-backed stopgap bill underscores the political gridlock, and reports of the White House instructing federal agencies to prepare layoff plans in case of a shutdown further exacerbate the situation.
Amidst this backdrop, several companies are slated to release earnings reports. Accenture, a major player in AI consulting, is particularly noteworthy, as investors will be closely scrutinizing its assessment of the technology’s impact. Jabil Circuit, a significant supplier to Apple, will also unveil its results, with market anticipation focused on its performance in the data center infrastructure services sector.
Meanwhile, Intel Corporation’s shares rose following reports of a potential investment approach from Apple. Finally, oil prices retreated from recent highs amid uncertainties in the supply-demand outlook.
