U.S. Stock Futures Inch Up Ahead of Jobless Data

U.S. stock futures ticked higher ahead of a weekly update on new applications for jobless benefits.

S&P 500 futures were up 0.4% and futures on the Dow Jones Industrial Average strengthened 0.2%. Futures on the technology-heavy Nasdaq-100 added 0.7%. The contracts don't necessarily predict market moves after the markets open.

In Europe, the Stoxx Europe 600 added 0.3% in morning trade, and it is at its highest level in a year. The information-technology and communication-services sectors led gains while the consumer-staples and consumer- discretionary sectors lost ground.

The Sage Group jumped 2.2% for a five-session winning streak.

Carnival fell 2.8% snapping a three-day run of gains and SSP Group slipped 2.7%.

The U.K.'s FTSE 100 climbed 0.3%. Other stock in Europe were mixed as France's CAC 40 rose 0.4% and Germany's DAX gained 0.3%, whereas the U.K.'s FTSE 250 edged down 0.1%.

The Swiss franc, the euro and the British pound were up 0.1%, 0.1% and 0.3% respectively against the U.S. dollar.

In commodities, Brent crude was down 0.4% to $62.90 a barrel. Gold was up 0.2% to $1,744.70 a troy ounce.

German 10-year bund yields were down to minus 0.323% and 10-year U.K. government debt known as gilts yields strengthened to 0.785%. The yield on 10-year U.S. Treasury edged up to 1.659% from 1.653%. Bond yields and prices move inversely.

Indexes in Asia were mixed as Hong Kong's Hang Seng rose 1.2% and China's benchmark Shanghai Composite was flat, rising 0.1% after declining 0.6% earlier, whereas Japan's Nikkei 225 index was broadly flat, losing 0.1% after falling 0.7%.

An

artificial-intelligence tool

was used in creating this article.

U.S. stock futures rose Thursday, pointing to another record-setting trading session after the opening bell, as investors awaited data on unemployment benefits and comments from Federal Reserve Chairman Jerome Powell.

Futures tied to the S&P 500 climbed 0.4%. The broad market index closed at its 18th record for this year on Wednesday. Nasdaq-100 futures advanced 0.8%, pointing to gains in technology stocks.

Stocks have started the second quarter on strong footing, with the S&P 500 rising 2.7% this month. The largest tech companies have surged ahead as the bond market calmed, easing concerns about the high valuations of growth stocks. Fed policy makers' comments, released on Wednesday, highlighted their intention to continue with easy monetary policies until the economy has recovered more.

"The dynamic remains supportive for stocks," said Adrien Pichoud, a portfolio manager and chief economist at SYZ Private Banking. "The Fed and central banks in general are perceived to be in no rush to raise rates."

The latest data on jobless claims, due at 8:30 a.m. ET, are likely to add to evidence that layoffs are easing as an economic revival gathers force. Economists surveyed by The Wall Street Journal expect worker filings for initial jobless claims, a proxy for layoffs, to have fallen to 694,000 last week, from 719,000 the prior week.

At 12 p.m., Mr. Powell will be speaking about the global economy at the International Monetary Fund's virtual spring meetings.

In bond markets, the yield on the 10-year U.S. Treasury note was relatively unchanged from 1.653% on Wednesday. It had climbed as high as 1.749% at the end of last month. Yields rise when bond prices fall.

The cooling off in bond yields has led to a revival in the largest technology stocks' rally. Apple, Microsoft, Amazon.com and Google's parent Alphabet -- which are the largest companies by market value on the S&P 500 -- have each climbed over 4% this month after stumbling in March.

"We consider bond yields to be close to the top, so one of the barriers to tech has begun to come down," said Seema Shah, chief strategist at Principal Global Investors. "If there ever was going to be a test for tech, it would be this environment, with rising bond yields and the work-from-home trade starting to fade, but tech has remained really resilient in the face of that."

Overseas, the pan-continental Stoxx Europe 600 ticked up 0.3%.

The European Central Bank will release the minutes from its last policy meeting at 7:30 a.m. The notes of policy makers' comments are expected to reflect views similar to the Fed's on a continuation of loose monetary policy, according to Carsten Brzeski, chief economist for the eurozone at Dutch bank ING.

"However, this can change very quickly once the recovery becomes more sustainable," Mr. Brzeski said.

In Asia, most major benchmarks climbed. The Shanghai Composite Index added less than 0.1%, and Hong Kong's Hang Seng Index rose 1.2%.

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com


  (END) Dow Jones Newswires
  04-08-21 0358ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.