Market Analytics and Considerations
Key Notes
Following a price decline in the prior period, U.S. stocks are expected to open marginally higher on Thursday. Nevertheless, advances are likely to just be modest as traders continue to worry about the prospect of a recession in the coming year.
Around 06:55 ET (11:55 GMT), the Nasdaq 100 futures were high 80 points, or 0.7%, and S&P 500 futures were up 16 pips, and the Dow futures contract had gained 80 points, representing 0.2%.
The blue-chip Dow Jones Industrial Average fell 365 points, roughly 1.1%, the broadly S&P 500 dropped 1.2%, and the tech-heavy Nasdaq Composite fell 1.4% as the three major averages all closed way lower on Wednesday.
Those major indices are all on track to have their poorest productivity and benefit as of 2008, and with Nasdaq expected to lose the most ground, falling by approximately a 1/3 as traders rotated out of growth firms due to concerns about a potential recession brought on by forceful tight monetary policy.
The weekly jobless claims figure will be the primary economic piece of data released on Thursday. It is predicted to increase slightly to 225,000 from 216,000 for the week ended December 24.
As increasing interest rates and an impending recession appeared to be having an impact, figures published earlier in the day by the European Central Bank revealed that bank lending to Eurozone corporations declined in November.
Additionally, likely to affect feelings On Thursday, Ukraine reported a fresh round of Russian missile attacks, with explosions audible across the country, notably in the capital Kyiv.
Following the cancellation of thousands of flights this week, including thousands today, Southwest Airlines (NYSE:LUV) is expected to be in the limelight on Thursday in the corporate world. This has angered the nation’s authorities.
Oil prices plunged on Wednesday as the sharp spike of COVID cases in China, the world’s biggest petroleum importer, dashed expectations for a boost in demand from this crucial source.
U.S. oil futures were 1.2% weaker at $77.99 a barrel by 06:55 ET, while the Brent contract was off 0.9% on $83.20.
The price of gold futures also decreased by 0.1% to $1,813.45/oz, whereas the EUR/USD exchange rate increased by 0.2% to 1.0633.