US Stock Futures Maintain Stability Post Labor Data
US stock index futures remained stable during evening trading on Thursday, following a positive turnaround on Wall Street. This was largely driven by new data indicating a significant drop in jobless claims, which eased some recession concerns. Wall Street indexes saw a strong rebound on Thursday, recovering some of the week's earlier losses thanks to positive earnings reports and ongoing speculation about future interest rate cuts. However, US stock benchmarks are still projected to end the week with a substantial decline, following the severe downturn experienced on Monday.
The European markets showed mixed results, with the DAX falling 0.1% to 5,344.75 points and the CAC 40 remaining stable at 18,538.0 points. Meanwhile, the FTSE 100 also fell by 0.1% to 39,563.0 points.
Wall Street's Partial Recovery Despite Weekly Losses
Wall Street indexes reported significant gains on Thursday after the release of data showing that initial jobless claims fell to 233,000 last week, surpassing expectations of 241,000. Despite these gains, US markets are still on track for weekly losses due to earlier recession fears that caused significant drops. The market was also unsettled by the Bank of Japan's hawkish stance and a large amount of profit-taking in the tech sector, with the Nasdaq entering correction territory from recent highs.
In Europe, the DAX rose by 2.3% to 5,319.31 points, and the CAC 40 surged by 2.9% to 16,659.0 points on Thursday. The FTSE 100 also rose by 1.8% to 39,446.49 points. Despite these daily gains, all three indexes have fallen between 0.7% and 3% for the week, with the S&P and the Nasdaq facing a potential fourth consecutive week of losses.
Focus Shifts to Upcoming CPI Data
With few major catalysts left for the week, market attention has shifted to the upcoming US inflation data set for release next week. This report is crucial as it arrives amid growing confidence that US inflation is easing, which may provide the Federal Reserve with the assurance needed to initiate interest rate cuts from September. Recent recession worries have led traders to speculate about a more significant rate cut of 50 basis points next month, compared to the previous expectation of a 25 basis point cut.
Earnings Impact: Expedia and Array Technologies
In after-hours trading, Expedia Inc saw a 10% rise in its stock following better-than-expected quarterly earnings, driven by strong travel demand. Conversely, Array Technologies Inc shares dropped by 12.7% after the company lowered its annual guidance, impacting its stock performance negatively.
