A trader works on the New York Stock Exchange (NYSE) in New York on August 20, 2021.
Andrew Kelly | Reuters
US stock futures remained stable in overnight trading on Wednesday following the rally in the S&P 500 that saw the index break above 4,500 for the first time.
Dow futures rose 31 points. S&P 500 futures gained 0.03% and Nasdaq 100 futures were unchanged.
Software giant Salesforce stocks rose 2% in expanded trading after the announcement of second-quarter results and forecasts that beat analysts’ estimates. Ulta Beauty also rose 6% in after-hours trading on the back of strong results.
On Wednesday, the Dow Jones Industrial Average rose 39 points. The S&P 500 gained 0.22% to close on a record, led by stocks that are benefiting from the economic reopening such as airlines, cruise lines and financial companies. The 500-share average broke above 4,500 for the first time on Wednesday, but closed below that level.
The Nasdaq Composite rose 0.15% and also hit a record close.
The benchmark ten-year government bond yield rose as high as 1.352% on Wednesday, its highest level since the beginning of the month when it returned as high as 1.364%.
“The yield on 10-year government bonds has continued to rise in the last few days and has exploded in [Wednesday’s] act and send a strong message that the US Delta variant of Covid may be peaking, which should build confidence, resume economic reopening and stimulate investment flows towards small caps and cyclical stocks, “said Jim Paulsen, Chief Investment Strategist at the Leuthold Group.
The much-anticipated Jackson Hole Symposium begins Thursday. At the event, central bankers could share their plan to curb monetary stimulus. In response to the pandemic, the Federal Reserve has bought at least $ 120 billion a month in bonds to curb longer-term interest rates and stimulate economic growth. Chairman Jerome Powell is due to comment on Friday.
“Expect investors to keep an eye on the Fed symposium for the remainder of this week for comments on the rate hike or the timing of rate hikes,” Paulsen said. “Either unexpected comments from the Fed or a failure or success in scaling up to 4500 could add additional volatility to the equity and bond markets.”
Last week’s unemployment claims data will be released Thursday at 8:30 a.m. ET. Economists polled by Dow Jones expect 350,000 Americans to register as unemployed last week, compared to 348,000 the previous week.
Several companies reported quarterly earnings on Thursday, including Dell Technologies, Gap, HP and Abercrombie & Fitch.
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