S&P 500 futures gained 0.46%, Nasdaq-100 futures added 0.23%, and Dow futures climbed more than 330 points. The yield on the benchmark 10-year US Treasury note fell to about 4.75% after Federal Reserve Governor Christopher Waller indicated he would support holding rates steady unless upcoming inflation data shows unexpected strength.
Expectations of another rate hike weakened, improving investor sentiment. The decline in Treasury yields was also supported by a stronger Japanese yen, which rose more than 1% against the US dollar.
Meanwhile, oil prices continued to rise, with US crude trading near $92 a barrel and Brent crude above $96. Higher oil prices have raised concerns that inflation could remain elevated, potentially complicating the Fed’s efforts to keep interest rates stable.
US unemployment data
Meanwhile, more Americans filed for unemployment benefits last week, but layoffs are still rare and jobless claims remain at historically low levels, according to an AP report.
The Labor Department reported Thursday filings for benefits ticked up to 206,000 last week from a revised 204,000 the week before, it added. The four-week average of claims, which smooths out week-to-week volatility, rose modestly to 207,250 last week, the AP report said.
Claims for jobless benefits are a proxy for layoffs, and economists watch them because they can be a sign of where the job market is headed. For the past year, claims have mostly stayed within a historically low range of 200,000 to 230,000 a week.
Companies, remembering the worker shortages that followed the end of COVID-19 lockups, are still reluctant to let go of staff. The unemployment rate is low at 4.1%.
US tech stocks in focus
Broadcom shares fell nearly 4% in premarket trading after its latest quarterly results and fiscal fourth-quarter revenue forecast were viewed as underwhelming. The chipmaker nevertheless forecast strong growth in artificial intelligence chip sales over the next two years.Hewlett Packard Enterprise fell about 4% after reporting higher sales that failed to meet elevated investor expectations.In contrast, Snowflake shares surged more than 23% after the software company reported second-quarter results above expectations and raised its full-year product revenue forecast. Analysts pointed to another quarter of accelerating product revenue, driven by AI demand.
Among the so-called Magnificent Seven stocks, Tesla gained 1.2%, Microsoft rose 0.5%, Alphabet added 0.3% and Amazon gained 0.2%. Meta rose about 0.7%, while Nvidia fell 0.4% and Apple slipped 0.2%.
Other premarket movers
Ultragenyx Pharmaceutical plunged 44% after an experimental drug for a rare genetic disorder failed to meet its primary endpoint in a study, prompting several brokerages to downgrade the stock.
Campbell’s fell 5% after cutting its dividend and issuing disappointing guidance, while Victoria’s Secret dropped 18% despite raising its guidance as investors focused on a slower pace of growth.
NetApp declined 8% even after raising its full-year forecast, while Argan gained 6% after its second-quarter revenue beat the average analyst estimate.
