U.S. stocks are set for a mixed start on Thursday as concerns regarding the economy and incremental yen carry trade unwinding remain an undercurrent. Traders may be keen to receive the jobless claims report, given the recent sell-off kickstarted last Thursday, partly due to a spike in the data. Reactions to earnings news have been mixed. The CBOE Volatility Index, aka VIX, has resumed its climb above the 28 level.
With the uncertainty around the economy and rate trajectory abounding, in the absence of any major polarizing catalysts, the market could see back-and-forth movement in the near term.
Futures
Performance (+/-)
Nasdaq 100
+0.08%
S&P 500
-0.02%
Dow
-0.18%
R2K
-0.32%
In premarket trading on Thursday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.05% to $518.90, and the Invesco QQQ ETF (NASDAQ:QQQ) rose 0.10% to $435.22, according to Benzinga Pro data.
Cues From Last Session:
The sell-off resumed Wednesday as early optimism regarding the worst being behind gave way to fears, taking the averages on a steady decline throughout the session. The positive start came after the Bank of Japan reassured that rate hikes are not imminent but techs dragged the market lower, as Super Micro Computer, Inc.’s (NASDAQ:SMCI) earnings miss weighed down on AI-levered stocks.
Reacting to Super Micros’ results, fund manager Louis Navellier said, “This has brought concerns regarding the profitability of building out AI networks despite the massive spending by the Mega Tech companies.”
The tech-heavy Nasdaq Composite suffered the most as it pulled back to a three-month low, while the Dow Jones Industrial Average and the S&P 500 Index held above Monday’s closing level.
Small-caps also experienced a ...
