US stock futures were pointing to a rebound on Friday, with S&P 500, Nasdaq 100 and Dow Jones futures trading higher after Wall Street’s sharp selloff in the previous session.
At around 6:01-6:02 a.m. EDT, S&P 500 futures were up 29 points, or 0.38%, at 7,691.50. Nasdaq 100 futures gained 206 points, or 0.70%, to 29,506.50, while Dow Jones futures rose 191 points, or 0.36%, to 53,040. The data is delayed.
Three factors are supporting the early recovery in sentiment: easing Treasury yields, slightly softer oil prices and US labour-market data that came in stronger than expected.
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The gains come after the S&P 500 and Nasdaq Composite fell 0.9% and 1%, respectively, on Thursday. The S&P 500 is now down 1.9% for the week, while the Nasdaq has fallen 2.5%, putting both indexes on course to end a three-week winning run. The Dow is down 1.8% week to date and is heading for a second consecutive weekly decline.
In Europe, markets opened mixed. The pan-European Stoxx 600 was just above the flatline, while the FTSE 100 gained 0.14%. Germany’s DAX and France’s CAC 40 were marginally lower. Asian markets also ended mixed. Japan’s Nikkei 225 fell 0.30%, while South Korea’s Kospi rose 0.88%. Australia’s S&P/ASX 200 declined 0.27%, while China’s CSI 300 gained 0.57%.
Thursday’s Wall Street losses came as long-dated US Treasury yields resumed their climb, with government efforts to calm the bond-market selloff failing to fully ease concerns about inflation and Treasury supply.
Meanwhile, US initial jobless claims came in at 206,000 for the week ended August 14, below the 210,000 expected by markets. The reading points to continued resilience in the labour market and could reduce pressure on the Federal Reserve to cut rates at its September meeting.
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VT Markets said stronger labour-market data could keep interest rates elevated and push the 10-year Treasury yield towards the 4.2% level seen earlier this year, from around 3.9%.
The firm also expects easing recession concerns to support equities and sees scope for the US dollar to strengthen as investors seek higher yields.
Slightly lower oil prices are providing another source of support, although inflation, interest rates and Treasury yields remain key drivers for Wall Street as trading begins.
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