Futures Pointing To Initial Pullback On Wall Street

The major U.S. index futures are currently pointing to a lower open on Thursday, with stocks likely to move to the downside after ending the previous session mostly higher.

Concerns about the impact of sharply higher energy prices are likely to weigh on Wall Street, as the price of crude oil resumed its surge after ending yesterday’s trading only modestly higher.

The jump in crude oil prices comes amid ongoing supply disruption worries due to the expanding conflict in the Middle East.

Iran has claimed it struck a U.S. oil tanker in the northern Persian Gulf, raising fears of a wider conflict after the Islamic republic threatened to halt shipping through the vital Strait of Hormuz.

Defense Secretary Pete Hegseth has also signaled a possible longer time frame for the conflict than has previously been floated by the Trump administration, saying the war could last up to eight weeks but might be over sooner.

Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of the Labor Department’s closely watched monthly jobs report on Friday.

Economists currently expect employment to rise by 60,000 jobs in February after jumping by 130,000 jobs in January, while the unemployment rate is expected to inch up to 4.4 percent from 4.3 percent.

A day ahead of the release of the monthly jobs report, the Labor Department released a report showing first-time claims for U.S. unemployment benefits came in flat in the week ended February 28th.

Stocks moved mostly higher during trading on Wednesday, partly offsetting the weakness seen in Tuesday’s session. The major averages all moved to the upside on the day, with the tech-heavy Nasdaq leading the charge.

The major averages ended the day off their highs of the session but still firmly positive. The Nasdaq jumped 290.79 points or 1.3 percent to 22,807.48, the S&P 500 advanced 52.87 points or 0.8 percent to 6,869.50 and the Dow climbed 238.14 points or 0.5 percent to 48,739.41.

The strength on Wall Street comes as traders continued to pick up stocks at relatively reduced levels after the early sell-off on Tuesday dragged the major averages down to their lowest levels in three months.

Positive sentiment may also have been generated in reaction to some upbeat U.S. economic data, including a report from payroll processor ADP released a report showing private sector employment in the U.S. increased by more than expected in the month of February.

ADP said private sector employment climbed by 63,000 jobs in February after rising by a downwardly revised 11,000 jobs in January.

Economists had expected private sector employment to grow by 48,000 jobs compared to the addition of 22,000 jobs originally reported for the previous month.

A separate report released by the Institute for Supply Management showed service sector activity in the U.S. unexpectedly grew at a faster pace in the month of February.

The ISM said its services PMI climbed to 56.1 in February from 53.8 in January, with a reading above 50 indicating growth. Economists had expected the index to edge down to 53.6.

With the unexpected increase, the services PMI reached its highest level since hitting 56.5 in July of 2022.

While early buying interest was also generated in reaction to a pullback by the price of crude oil, stocks saw continued strength even as the commodity moved to the upside.

Telecom stocks moved sharply higher over the course of the trading session, driving the NYSE Arca North American Telecom Index up by 2.2 percent.

Significant strength was also visible among networking stocks, as reflected by the 2.2 percent jump by the NYSE Arca Networking Index.

Semiconductor, biotechnology and computer hardware stocks also saw considerable strength, contributing to the surge by the tech-heavy Nasdaq.

Commodity, Currency Markets

Crude oil futures are surging $2.30 to $76.96 a barrel after edging up $0.10 to $74.66 a barrel on Wednesday. Meanwhile, after rising $11 to $5,134.70 an ounce in the previous session, gold futures are inching up $4.60 to $5,139.30 an ounce.

On the currency front, the U.S. dollar is trading at 157.72 yen versus the 157.03 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1595 compared to yesterday’s $1.1633.

Asia

Asian stocks advanced on Thursday after U.S. jobs and services data beat forecasts, and reports emerged that Tehran is willing to talk with the U.S. on ending the war. However, Iranian officials reportedly denied the reports about cease-fire talks.

Gold prices were half a percent higher at $5,165 an ounce in Asian trading as the dollar held steady after coming under selling pressure in the previous session.

Oil prices jumped more than 3 percent after a U.S. submarine sank an Iranian warship off the southern coast of Sri Lanka.

In a Pentagon briefing, U.S. Defense Secretary Pete Hegseth said the strike on the warship was the first such attack on an enemy since World War II.

China’s Shanghai Composite Index rose 0.6 percent to 4,108.57 after China vowed to accelerate its push for tech self-reliance and unveiled plans to inject 300-billion yuan ($44bn) into state-owned banks this year to guard against systemic risks. Hong Kong’s Hang Seng Index rose 0.3 percent to 25,321.34, paring early gains.

Japanese markets bounced back on speculation that tensions in the Middle East could ease. The Nikkei 225 Index jumped 1.90 percent, to 55,278.06 after losing more than 4,600 points over the past three trading days.

The broader Topix Index also closed up 1.9 percent at 3,702.67, with mining, oil and coal product, and bank issues leading the surge.

Seoul stocks rebounded from the previous session’s sharpest decline ever on signs of an easing oil price surge. The Kospi soared 9.6 percent to 5,583.90 after plunging 18 percent over the past two sessions following the U.S. and Israeli strikes on Iran.

Technology giants and automakers topped the gainers list, with Hyundai Motor, Samsung Electronics and SK Hynix surging 9-11 percent.

Australian stocks eked out modest gains as technology stocks recovered on bargain hunting. The benchmark S&P/ASX 200 Index rose 0.4 percent to 8,940.30, while the broader All Ordinaries Index closed 0.5 percent higher at 9,164.90. WiseTech Global soared 7.1 percent and Xero added 4.3 percent.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index ended 0.6 percent higher at 13,617.89.

Europe

European stocks are mostly lower on Thursday as investors digest mixed earnings results and keep a close eye on oil market dynamics amid an expanding Middle East conflict.

Oil extended gains as the U.S.-Israeli war on Iran entered its sixth day. WTI crude futures were up more than 1 percent after a U.S. submarine sank an Iranian warship off the southern coast of Sri Lanka.

In a Pentagon briefing, U.S. Defense Secretary Pete Hegseth said the strike on the warship was the first such attack on an enemy since World War II.

In economic news, French industrial production rebounded in January, driven by the robust recovery in transport equipment output, the statistical office INSEE said.

Industrial production expanded 0.5 percent on a monthly basis, offsetting December’s 0.5 percent decrease. Output was expected to grow 0.4 percent.

Currently, the French CAC 40 Index, the German DAX Index and the U.K.’s FTSE 100 Index are all down by 0.3 percent.

British homebuilder Taylor Wimpey rallied 2.3 percent after launching a share buyback program worth up to £52.3 million.

Travel retailer WH Smith fell over 1 percent. The company has warned of potential disruption caused by war in the Middle East after reporting a 5 percent rise in first-half revenue.

PageGroup shares plunged 19 percent. The recruiter reported a 67 percent fall in annual pretax profit, hurt by weak European hiring and an uncertain economic outlook.

Financial services business Admiral surged 4 percent as it posted record profits despite a challenging economic backdrop.

Consumer goods firm Reckitt Benckiser fell 2.6 percent after maintaining its revenue growth targets for this fiscal year.

Insurer Aviva declined 2.3 percent despite meeting 2025 profit targets.

Germany’s Deutsche Post slumped 4.6 percent after reporting lower FY25 attributable net profit.

Defense specialist RENK Group tumbled 3.2 percent despite the company achieving annual targets with new record revenue and order backlog.

Swedish radiotherapy equipment maker Elekta jumped 3.5 percent despite mixed-third-quarter results, with tariff costs and changes in FX showing a negative impact of 100 and 130 basis points respectively on the gross margin.

U.S. Economic News

A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits came in flat in the week ended February 28th.

The Labor Department said initial jobless claims came in at 213,000, unchanged from the previous week’s revised level.

Economists had expected jobless claims to inch up to 215,000 from the 212,000 originally reported for the previous week.

Meanwhile, the report said the less volatile four-week moving average fell to 215,750, a decrease of 4,750 from the previous week’s revised average of 220,500.

A separate report released by the Labor Department on Thursday showed import prices in the U.S. increased by slightly more than expected in the month of January.

The Labor Department said import prices rose by 0.2 percent in January, matching an upwardly revised uptick in December. Economists had expected import prices to inch up by 0.1 percent.

The report also said export prices climbed by 0.6 percent in January, which also matched an upwardly revised increase in February. Economists had expected export prices to rise by 0.2 percent.

Labor productivity in the U.S. surged by much more than expected in the fourth quarter of 2025, according to another report released by the Labor Department on Thursday.

The Labor Department said labor productivity shot up by 2.8 percent in the fourth quarter after soaring by an upwardly revised 5.2 percent in the third quarter.

Economists had expected labor productivity to jump by 1.9 percent in the fourth quarter compared to the 4.9 percent spike that had been reported for the previous quarter.

The report said unit labor costs also surged by 2.8 percent in the fourth quarter after tumbling by a revised 1.8 percent in the third quarter.

Unit labor costs were expected to shoot up by 2.1 percent compared to the 1.9 percent slump that had been reported for the previous quarter.

At 11 am ET, the Treasury Department is scheduled to announce the results of this month’s auctions of three-year and ten-year notes and thirty-year bonds.

Federal Reserve Vice Chair for Supervision Michelle Bowman is due to speak before a New York Bankers Association “Navigating What’s Next: Perspective on the Economy and Innovation” event at 1:15 pm ET.