U.S. stock futures rose significantly on Thursday, rebounding after the worst session for the Nasdaq Composite since 2022, as investors grew more cautious about the high valuations of major tech stocks.
All eyes will remain on the tech sector, although strong results might generate some confidence, and more earnings will be released on Wednesday.
On the economic front, jobless claims for the week ending July 13 are set to be released later in the session, as investors look for clues about the health of the labor market in the country while the Federal Reserve seeks further guidance before cutting interest rates.
In other news, the European Central Bank will hold its latest policy-setting meeting later in the session, widely expected to keep interest rates unchanged after cutting them from record highs last month.
Attention is likely to focus on the accompanying press conference held by ECB President Christine Lagarde, with investors seeking clues about the future path of interest rates. Lagarde is likely to try to strike a balance, acknowledging that regional growth is weak, but domestic inflation and wage growth remain stubbornly high.
Markets expect nearly two rate cuts for the rest of the year, with a widespread expectation that the next move will be in September. Analysts at Morgan Stanley said in a note, “The European Central Bank will keep interest rates unchanged in July.”
