U.S. Stocks May Regain Ground Following Yesterday’s Sell-Off
Following the sell-off seen in the previous session, stocks may move back to the upside in early trading on Thursday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.1 percent.
The futures turned positive following the release of a Labor Department report showing producer prices increased in line with economist estimates in the month of March.
The Labor Department said its producer price index for final demand crept up by 0.2 percent in March after climbing by 0.6 percent in February. The uptick matched expectations.
Meanwhile, the report said the annual rate of producer price growth accelerated to 2.1 percent in March from 1.6 percent in February.
The annual rate of growth was the fastest since surging 2.3 percent last April but came in slightly slower than the 2.2 percent jump forecast by economists.
The slightly slower than expected annual growth may partly offset the interest rate concerns raised by yesterday’s hotter-than-expected consumer price inflation data.
Treasury yields have retreated following the release of the report, with the yield on the benchmark ten-year note pulling back off its highest levels in almost five months.
Traders may also look to pick up stocks at relatively reduced levels following the steep drop seen on Wednesday, which dragged the Dow down to a nearly two-month closing low.
Stocks moved sharply lower in early trading on Wednesday and continued to see significant weakness throughout the session. The major averages all showed notable moves to the downside.
The major averages remained firmly negative going into the close of trading. The Dow tumbled 422.16 points or 1.1 percent to 38,461.51, the Nasdaq slid 136.28 points or 0.8 percent to 16,170.36 and the S&P 500 slumped 49.27 points or 1.0 percent to 5,160.64.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index fell by 0.4 percent, while China’s Shanghai Composite Index edged up by 0.2 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index has slid by 0.7 percent, the U.K.’s FTSE 100 Index is down by 0.4 percent and the French CAC 40 Index is down by 0.3 percent.
In commodities trading, crude oil futures are slipping $0.44 to $85.77 a barrel after jumping $0.98 to $86.21 a barrel on Wednesday. Meanwhile, after falling $14 to $2,348.40 an ounce in the previous session, gold futures are climbing $11.40 to $2,359.80 an ounce.
On the currency front, the U.S. dollar is trading at 152.95 yen versus the 153.16 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0731 compared to yesterday’s $1.0743.
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