Key Points
- U.S. stock futures posted modest gains as investors navigate Middle East tensions and await critical economic data.
- The S&P 500 was up 0.01%, the Nasdaq 100 rose 0.15%, and the Dow 30 added 0.09%.
- The economic focus is on the nonfarm payrolls report, which is expected Friday. Fresh jobless claims data are due Thursday.
- Oil prices surged as Middle East violence threatens potential disruption in crude supply.
U.S. stock futures showed modest gains on Thursday, with 8:23 (ET), the S&P 500 up 0.01% to 5,709.55, the Nasdaq 100 rising 0.15% to 19,802.58, and the Dow 30 adding 0.09% to 42,196.53. These movements follow a turbulent market week, impacted by geopolitical tensions in the Middle East and mixed economic data.
Investor sentiment remains fragile amid escalating violence in the Middle East. Analysts at ING noted, “Escalation in the Middle East has led markets to price in a greater risk of a fully-fledged conflict in the region, which could potentially involve the U.S.” This uncertainty has hit risk assets hard, with markets fluctuating as they brace for possible economic and geopolitical consequences.
Traders also focus on upcoming U.S. labor market data, particularly the nonfarm payrolls report due on Friday. This report is crucial as it could provide insights into the Federal Reserve’s next move on interest rates. Before that, fresh weekly jobless claims and services activity data will be released on Thursday, offering further clues on the health of the U.S. economy.
Recent data, including job openings and ADP private payrolls, have indicated a relatively stable labor market, reducing expectations that the Federal Reserve will implement another aggressive rate hike after last month’s 50 basis-point increase.
Oil prices surged on Thursday as the conflict in the Middle East raised concerns over potential disruptions in crude supplies. By 08:23 (ET), Brent crude was up 1.84% to 75.26 per barrel, while U.S. crude futures (WTI) climbed 2.04% to 71.53 per barrel.
Traders are anxiously focusing on Middle East tensions. The situation is further complicated by the recent report from the Energy Information Administration, which revealed that U.S. crude inventories unexpectedly rose by 3.9 million barrels in the week ending September 27.
