The S&P 500 and Nasdaq are on track to open higher Thursday as the U.S. stock market looks to rebound from a steep downturn yesterday.
Futures tied to the S&P 500 and Nasdaq 100 were up 0.5% and 0.9% about half an hour before the opening bell, while those linked to the Dow Jones Industrial Average were down 0.1%. The Dow and S&P 500, which ended last week at record highs, have closed lower for three straight days, while the Nasdaq is coming off a 1.6% decline yesterday that snapped a five-session winning streak.
Tesla (TSLA) shares were leading the gains in premarket trading Thursday, rising 14% after the EV maker reported better-than-expected earnings and said that plans for new, more-affordable models are “on track” for production to start next year.
Other large-cap tech stocks were up across the board, after leading the previous session’s declines. Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META) and Broadcom (AVGO) were all gaining ground ahead of the bell.
Shares of United Parcel Service (UPS) were up 9% after the package delivery giant reported better-than-expected results on the top and bottom lines.
Shares of Dow component Boeing (BA) fell more than 2% in premarket trading after the plane maker’s machinists late Wednesday rejected a new contract offer and extended a crippling six-week strike. Fellow Dow member International Business Machines (IBM) was 4% after reporting quarterly revenue that came in below analysts’ expectations. Honeywell (HON), another Dow component, was down 2% after reporting results.
Investors are keeping close tabs on several economic indicators that are due to be released today. Weekly jobless claims numbers released this morning came in lower than expected, while data on new-home sales and manufacturing are due later. Market participants are closely watching the data as they seek confirmation that the U.S. economy remains on sound footing and look for information that could inform the Federal Reserve’s decisions on interest rates.
The yield on 10-year Treasurys, which is tightly correlated with expectations around interest rates, was at 4.21% Thursday morning, down from 4.24% yesterday. The yield has been on the rise, hitting levels not seen since late July in recent days, as the market recalibrated its expectations for how aggressive the Fed will be in easing policy in the coming months.
Gold futures were up slightly, at around $2,750 an ounce, once again nearing all-time high levels.