Editorial StaffU.S. equity futures traded higher Thursday, while Treasury bond yields eased and the dollar held steady against its global peers, as investors continue to track interest rate markets ahead of next week’s Fed policy meeting.
Tech stocks were also on the move, with traders eyeing beaten-down shares in the Nasdaq Composite, which fell into correction territory — defined as a 10% slide from a recent high — during the Wednesday session.
With between three and four rate hikes anticipated from the Fed this year, traders and investors are also looking at the difference in response from policymakers around the world, with China cutting rates in order to stoke post-pandemic growth and the European Central Bank hinting Wednesday that it may not need to move as ‘boldly’ as the Fed to tame record inflation in the region.
Geopolitical tensions may also influence risk appetite over the coming weeks after President Joe Biden warned late Wednesday that Russia may “move in” on the Ukraine, adding that “it is going to be a disaster for Russia” of any invasion rises past what he called a “minor incursion”.
On Wall Street, jobless claims, manufacturing and housing data will arrive before the start of trading, with key quarterly earnings from Netflix (NFLX) – Get Netflix, Inc. Report unofficially kicking-off the start of the tech reporting season after the closing bell.
Futures tied to the Dow are indicating a 120 point opening bell gain while those linked to the S&P 500 are priced for a 20 point advance.
Nasdaq Composite futures are indicating a 105 point opening bell gain as benchmark 10-year Treasury note yields ease to 1.853% after hitting a post-pandemic high of 1.895% in Wednesday trading.
The Street contributed to this article.
