August, 2024 – U.S. stock futures showed mixed signals on Thursday as traders approached the market open with caution following another round of volatility in Asian markets.
Futures for the Dow Jones Industrial Average fell 54 points, or 0.1%. The S&P 500 futures edged up 0.1%, while contracts for the tech-heavy Nasdaq 100 increased by 0.2%. All three major indexes closed lower on Wednesday despite spending much of the day in positive territory.
In Asia, the Nikkei 225 in Tokyo ended the day 0.7% lower, influenced by a rising yen that offset the optimism from Wednesday’s indication by the Bank of Japan to proceed cautiously with future interest-rate hikes. Meanwhile, Hong Kong’s Hang Seng Index saw a slight gain of 0.1%.
European markets reflected growing pessimism. Germany’s DAX index dropped 0.8%, and the U.K.’s FTSE 100 fell 1.1%, mirroring the unsettled sentiment in global trading.
This cautious mood is carrying over into early U.S. trading, following recent volatile swings. The S&P 500 remains nearly 6% below its level from a week ago. Recent earnings reports from major companies like Walt Disney and Airbnb have raised concerns about weakening consumer spending, which may influence the economic outlook and increase expectations for a potential Federal Reserve interest-rate cut next month. Traders will be eyeing fresh labor market data set to be released on Thursday.
Matt Britzman, an analyst at Hargreaves Lansdown, commented, “Markets may have simmered down but this roller-coaster week isn’t over yet. Earnings reports reflect a weakening demand for hotel rooms and theme parks, further signaling a decline in consumer strength.”
In the bond market, yields were lower. The benchmark 10-year U.S. Treasury bond yield stood at 3.903%, while the 2-year note yield was at 3.935%.
