(Bloomberg) — US stock futures rose Thursday, lifted by a fresh slew of earnings releases and a revival of Federal Reserve policy-easing bets.
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Futures contracts for the Nasdaq 100 were up 0.4% while those on the S&P 500 rose 0.2%, setting up Wall Street to extend gains notched in the previous session when US core inflation came in a touch below forecasts. Sentiment got a further boost as Bank of America Corp. posted estimate-beating results, lifting its shares in premarket.
Technology companies including Nvidia Corp. and Super Micro Computer Inc. also rallied after a strong outlook from chipmaker Taiwan Semiconductor Manufacturing Co. reinforced hopes of resilient spending on artificial intelligence. On the downside, shares in UnitedHealth Group Inc. slid more than 4% after revenue fell short of expectations, dragging other health insurers lower.
European shares rose too, buoyed by luxury goods maker Richemont, which reported a jump in jewelry sales. Its results drove an index of European luxury stocks higher by the most since March 2022.
The market’s next test will be US initial jobless claims and retail sales figures due later Thursday. These will provide a broader picture of the health of the economy, with economists forecasting retail sales to have slowed slightly last month.
“What we want to see is pretty much a Goldilocks scenario of decent growth in the US but no strong re-acceleration,” said Amelie Derambure, a portfolio manager at Amundi Asset Management, referring to a scenario where the economy is in good shape but not hot enough to derail interest-rate bets.
“What we don’t want is something too crazy on the retail sales that would put pressure on the Fed,” she added.
Ten-year Treasury yields held steady on Thursday after Wednesday’s 10 basis-point slide, as traders returned to fully pricing a Fed rate reduction by July.
In currency markets, Bloomberg’s dollar index edged higher, halting a two-day losing streak. The latest lackluster growth data from Britain underscored the divergence between the US economy and its peers in the developed world, knocking the pound lower against the greenback.
Key events this week:
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ECB releases account of December policy meeting, Thursday
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Morgan Stanley earnings, Thursday
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US initial jobless claims, retail sales, import prices, Thursday
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China GDP, property prices, retail sales, industrial production, Friday
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Eurozone CPI, Friday
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US housing starts, industrial production, Friday
