U.S. stock futures rose on Thursday, as the Dow Jones, Nasdaq 100, and S&P 500 indices advanced, following Tuesday’s sharp sell-off.
On Wednesday, the Federal Reserve unanimously held the federal funds rate steady at 3.50%-3.75%, as widely expected, in the first policy meeting under new Fed Chair Kevin Warsh. He announced five task forces to review Fed communications, the balance sheet, data sources, productivity and jobs in the AI era, and the inflation framework itself.
Thursday will mark the last trading day of this week, as the markets will be closed for Juneteenth National Independence Day on Friday.
Meanwhile, the 10-year Treasury bond yielded 4.45%, and the two-year bond was at 4.17%. The CME Group’s FedWatch tool‘s projections show markets pricing a 72.2% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.52% |
| S&P 500 | 0.86% |
| Nasdaq 100 | 1.47% |
| Russell 2000 | 1.05% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Thursday. The SPY was up 0.71% at $746.20, while the QQQ advanced by 1.59% to $734.00.
Stocks In Focus
SpaceX
- Space Exploration Technologies Corp. (NASDAQ:SPCX) rose 0.36% in premarket on Thursday after it closed lower for the first time since its listing on its fourth trading day, on Wednesday.
Smith & Wesson Brands
- Smith & Wesson Brands Inc. (NASDAQ:SWBI) surged 15.37% after posting better-than-expected fourth-quarter results after Wednesday’s closing bell.
- Benzinga’s Edge Stock Rankings indicate that SWBI maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a poor growth score.
Safe Bulkers
- Safe Bulkers Inc. (NYSE:SB) rose 3.40% after reporting better-than-expected first-quarter financial results after the closing bell on Wednesday.
- Benzinga’s Edge Stock Rankings indicate that SB maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a solid quality score.
Sleep Number
- Sleep Number Corp. (NASDAQ:SNBR) plunged by 55.90% as it disclosed that Nasdaq plans to delist its common stock following the mattress maker’s recent Chapter 11 bankruptcy filing.
- Benzinga’s Edge Stock Rankings indicate that SNBR maintains a weak price trend in the short, long, and medium terms.
Adobe
- Adobe Inc. (NASDAQ:ADBE) was up 0.60% as it announced Adobe Brand Visibility, a new solution for businesses to ensure their brand is visible, trusted, and chosen across AI surfaces.
- Benzinga’s Edge Stock Rankings indicate that ADBE maintains a weak price trend in the short, medium, and long terms, with a moderate value score.
Freecast
- Freecast Inc. (NASDAQ:CAST) zoomed 87.96% after announcing that it has entered into a reseller agreement for Starlink Business services. This agreement enables FreeCast to offer enterprise-grade satellite broadband connectivity alongside its growing portfolio of media, television, advertising, and digital engagement solutions.
- Benzinga’s Edge Stock Rankings indicate that CAST maintains a strong price trend in the short, long, and medium terms.
Cues From Last Session
S&P 500 sectors all ended in the red, led down by communication services, consumer discretionary, and real estate, as U.S. stocks finished lower on Wednesday.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.98% | 51,492.55 |
| S&P 500 | -1.21% | 7,420.10 |
| Nasdaq Composite | -1.34% | 26,021.66 |
| Russell 2000 | -0.72% | 2,917.98 |
Insights From Analysts
Scott Wren, Senior Global Market Strategist at Wells Fargo Investment Institute, provides an optimistic yet grounded outlook for the U.S. economy and stock market.
Regarding economic growth, Wren notes that from a “high altitude, we look for good GDP growth through the end of next year.”
While he anticipates that inflation will likely ease over the next 18 months, he cautions it will remain “higher on an annual basis than the Federal Reserve (Fed) desires through next year,” which will likely keep the Fed from adjusting interest rates anytime soon.
Given this backdrop, Wren remains bullish on corporate performance, stating, “We continue to favor equities over fixed income.”
He recommends directing new funds toward U.S. Large Cap and Mid Cap Equities, pointing to artificial intelligence secular trends and lower AI-related valuations in sectors like Industrials and Utilities.
Ultimately, Financials remain their “most favored sector,” and Wren anticipates that the “S&P 500 Index will post record earnings next year and reach the 8,600-8,800 range.”
Upcoming Economic Data
Here’s what investors will be keeping an eye on Thursday.
- Initial jobless claims for the week ending June 13, and June’s Philadelphia Fed manufacturing survey will all be released by 8:30 a.m. ET.
- On Friday, there are no economic reports scheduled due to the Juneteenth federal holiday.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 2.20% to hover around $75.10 per barrel.
Gold Spot US Dollar rose 0.71% to hover around $4,287.95 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.04% higher at the 99.5760 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.99% lower at $64,513.16 per coin, as per the last 24 hours.
Asian markets closed higher on Thursday, except Hong Kong’s Hang Seng and Australia’s ASX 200 indices. China’s CSI 300, India’s Nifty 50, Japan’s Nikkei 225, and South Korea’s Kospi rose. European markets were mixed in early trade.
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