US stocks are set to open markets lower on Thursday after the OPEC meeting. S&P 500 futures as well as Dow Jones futures remained on a standstill ahead of the US initial jobless claims. Nasdaq 100 futures inched lower.
S&P 500 Outlook
The S&P 500 index closed higher on Wednesday after the release of ADP Nonfarm payrolls for June. The private payrolls for June dipped from the previous 978,000 in May. The number of new private jobs in June came in at 692,000 surpassing the 683,000 forecast.
The service-providing sector recorded the largest number of employments in June. This was driven by large employment numbers in the leisure and hospitality sector. The service-providing sector was the hardest hit sector at the onset of the pandemic, but with the easing of lockdown restrictions, the sector has greatly improved.
Oil prices leaped 2% higher after the OPEC meeting on Thursday. OPEC+ is moving towards increasing 2 million barrels of oil per day to the market. Saudi Arabia and Russia are on a preliminary agreement to ease output curbs from August.
WTI as well as Brent were hovering at their highest levels since October 2018. WTI spiked more than 10% in June while Brent Crude gained 8% in the same month. With the easing of travel restrictions and successful vaccination rollout, analysts expect oil demand to gather pace in the second half of 2021.
The S&P 500 index will react to the strong US initial jobless claims data. The jobless claims data for the week ending June 26, fell from 415,000 to 364,000. This was stronger than the estimated forecast of 390,000. It was also the lowest level for initial claims since March 2020.
Didi edged 8.56% higher in the premarket. The transport company will be added to the FTSE global equity indexes from July 8th. This was after the company’s US initial public offering and Wall Street debut on Wednesday.
Nio and Xpeng rose in pre-market trading. The electric vehicle makers gained after reporting their latest delivery numbers. Xpeng delivered 6,565 vehicles in June while Nio delivered 8,083 vehicles which was 116% higher than the previous year.
On the flipside, CureVac slipped 13.45% in the premarket. The German drug maker said that its Covid-19 vaccine is only 48% effective.