U.S. stock-index futures pointed to a higher open on Thursday, suggesting Wall Street would resume a recent upward trend, although geopolitical issues remained at the forefront.
Stocks tumbled in Wednesday’s session, a decline that was blamed in part on escalating tensions over Syria. However, this potential headwind appeared to fade after President Donald Trump tweeted that a military strike on the Middle Eastern country may not be imminent.
What are the main benchmarks doing?
Dow Jones Industrial Average futures YMM8, +0.71% rose by 172 points, or 0.7%, to 24,340, while S&P 500 futures ESM8, +0.61% tacked on 16.15 points, or 0.6%, to 2,657. Nasdaq-100 futures NQM8, +0.67% gained 44.50 points, or 0.7%, to 6,637.75.
On Wednesday, the Dow DJIA, -0.90% closed lower by 219 points, or 0.9%, while the S&P 500 SPX, -0.55% and the Nasdaq Composite COMP, -0.36% shed 0.6% and 0.4%, respectively. Major indexes have risen in five of the past seven sessions.
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What’s driving markets?
Geopolitical concerns are weighing on investors’ minds, after Trump on Wednesday signaled in a tweet that a missile attack on Syria wasn’t far off, saying, “Get ready, Russia.” But early Thursday, a fresh tweet from Trump sounded less bellicose, as the president posted: “Never said when an attack on Syria would take place. Could be very soon or not so soon at all!”
The possibility of a Western strike against Syrian President Bashar al-Assad, who is backed by Russia, has been growing since a suspected government-sanctioned chemical-weapons attack killed civilians in Damascus over the weekend.
Analysts said there is additional uncertainty around the potential for business-friendly policies following House Speaker Paul Ryan’s announcement Wednesday that he will step down in January.
Check out Rex Nutting on: When his country needed him, Paul Ryan didn’t answer
Meanwhile, worries about a potential global trade war are persisting, as a Chinese government spokesman denied Thursday that recently announced policy changes constitute concessions to the Trump administration in the countries’ trade skirmish.
What are strategists saying?
• “Trump’s goading of Russia in a tweet has prompted a shift back into safe-haven assets,” said Richard Perry, a Hantec Markets analyst, in a note. “With markets consolidating, we wait to see what Trump tweets today.”
• “Ryan is the most prominent member of the party to resign and his exit poses a serious risk to the Republican party’s ability to maintain control of Congress,” said Kathy Lien, managing director of foreign-exchange strategy for BK Asset Management.
“For better or for worse (we’ll let you decide), if the Democrats win in November, it will make it very difficult for President Trump to get anything done in the second part of his term,” she said.
Which stocks are in focus?
Bed Bath & Beyond Inc.’s stock BBBY, +1.27% tumbled 16% in premarket action after the home-goods retailer late Wednesday guided earnings for fiscal 2018 below forecasts.
Shares in Zuora Inc. ZUO, +0.00% are expected to begin trading Thursday on the New York Stock Exchange. The provider of enterprise software late Wednesday said it had priced its initial public offering above the expected range.
See: 5 things to know about subscription-software company Zuora
Shares of BlackRock Inc. BLK, -1.62% gained 1.8% in premarket trading after the asset-managing giant reported earnings and revenue that came in ahead of forecasts.
Delta Air Lines Inc. DAL, -1.70% rose 0.5% after it reported first-quarter earnings and sales that topped forecasts, though it provided a downbeat outlook for the rest of the year.
Drugstore chain Rite Aid Corp. RAD, -0.61% spiked 2% after it reported adjusted results that were better than expected. It also completed a sale of stores to Walgreens Boots Alliance Inc. WBA, +0.55%
What are other markets doing?
Asian stocks mostly closed lower, as Syria tensions and Wednesday’s hawkish Federal Reserve minutes appeared to spur caution among investors. European stocks SXXP, +0.46% traded higher.
Gold futures GCM8, -0.96% fell. Oil futures CLK8, -0.12% were little changed and staying near three-year highs on Syria tension, as traders wait for OPEC’s monthly report. The ICE U.S. Dollar Index DXY, +0.39% was advancing.
Which economic reports are on tap?
Initial jobless claims fell in the first week of April and returned near the lowest levels since the early 1970s.
Check out: MarketWatch’s Economic Calendar
At its March policy meeting, the European Central Bank warned that trade wars and a strengthening euro risked undermining the eurozone’s economic recovery, underlining the ECB’s caution as it prepares to phase out its large monetary stimulus.
At 5 p.m. Eastern, after the market’s close, Minneapolis Federal Reserve President Neel Kashkari is due to take part in a question-and-answer session with the Associated General Contractors of Minnesota.