US stock futures edged lower on Thursday ahead of the weekly initial jobless claims data. Dow Jones futures skidded 1.22% as Nasdaq 100 futures followed suit with a 1.18% drop. S&P 500 futures fell 1.16% snapping from its record high level on Wednesday.
US Inflation Concerns
Dow Jones index closed in higher on Wednesday after the release of the Federal Open Market Committee (FOMC) minutes. According to the document, Fed officials discussed the tapering of asset purchases.
Some members indicated that the US economy was recovering at a faster rate than expected. Inflation pressures were also said to have surged. These drove some members to suggest an earlier adjustment of the Fed’s monetary policies.
However, most Fed members including Jerome Powell, saw no need to rush the decision. The members agreed that they would consider tightening its policies once the US economy met substantial progress.
The Federal Reserve kept its benchmark rate in a range between 0% and 0.25%. It also held its short-term interest rates at almost zero. The Fed plans to buy at least $80 billion of Treasuries as well as $40 billion of mortgage- backed securities.
US Treasury bond yields slipped ahead of the US initial jobless claims data later in the day. The 10-year US Treasury yield hit its lowest level since February. It fell to 1.25% while the yield on the 30-year Treasury bond dipped to 1.879%.
Dow Jones will react to the weekly initial jobless claims data scheduled for today. The jobless claims for the week ending July 3 are expected to fall to 350,000 from the previous 364,000. Jobless claims have been on a downtrend amid eased lockdown restrictions and successful vaccination rollout.
GAN Limited was among the best performers in premarket trading. The online gambling company’s stock was up 10.89% after recently publishing its preliminary results for the second quarter this year. The company said that it recorded a higher-than-expected revenue in the first quarter.
WD-40 company’s stocks rose 8.62% in the pre-market trade. The company has been on an upward trend after improving its full-year revenue forecast. It expects sales worth $475 million and $490 million for the fiscal year.
Didi Global stocks slipped 6.05% in premarket trading. The company’s stocks have been on a losing streak after China announced a cybersecurity review of the company two days after its debut of the NYSE.
Virgin Galactic snapped from its winning streak on Thursday. The company declined 5.41% in its stock earnings. The company announced that its found Richard Branson would be onboard for the next spaceflight test.