Stock futures were flat Thursday as Wall Street built on its best day in nearly a month.
Futures for the Dow Jones Industrial Average were down 10 points, or 0.03%. Futures for the S&P 500 fell 0.13%, and futures for the Nasdaq 100 fell 0.33%.
The future changed little after the European Central Bank Raised the interest rate by 0.75 percent. Its uplifting 0% to 0.75% deposit, A much-anticipated move to curb inflation. Next, traders look to Federal Reserve Chairman Jerome Powell’s question-and-answer session at the Cato Institute as they look for more clues about the Fed’s plans for future rate hikes.
Stock market goes down a A solid rebound during regular trading hours on Wednesday. The Dow gained about 436 points, or 1.4%. The S&P 500 added 1.8%, and the Nasdaq Composite rose 2.1%.
It was the best day for all three averages since August 10, and the Nasdaq snapped a seven-day losing streak.
Even with Wednesday’s rally, stocks are down overall. Concerns about a sluggish economy and further rate hikes from the Federal Reserve are keeping some investors away from riskier parts of the market.
“Recession risk is increasing, and as a result we are moving more defensively in our portfolios. However, high inflation means traditional ‘risk off’ strategies such as cash and government bonds can create a drag on total returns,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. The expert said in a note to clients.
“We remain fully invested in our portfolios, leveraging selected exposures within that overall neutral-risk position to build resilience against volatility and inflation. In our equity sleeve, this includes a strong overweight to equity and dividend-paying value,” added Goodwin.
On Thursday morning, investors will get the latest look at the US economy with jobless claims data. Economists polled by Dow Jones expected 235,000 initial jobless claims, up from 232,000 the previous week.
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