After delivering a robust performance on Wednesday, stocks may experience a pullback in early trading on Thursday. Currently, major index futures suggest a lower opening for the markets, with S&P 500 futures dipping by 0.3%.
Investors may be prompted to realize profits following yesterday's market gains, which saw the tech-focused Nasdaq break the 20,000 mark for the first time in history.
Additionally, sentiment is likely dampened by a Labor Department report indicating that U.S. producer prices increased more than anticipated in November. Specifically, the producer price index for final demand grew by 0.4% in November, following an upward revision to a 0.3% rise in October. Economists had predicted a more modest increase of 0.2%, aligning with prior reports.
Furthermore, the annual producer price growth rate escalated to 3.0% in November from a revised 2.6% in October, surpassing expectations of a rise to 2.6% from an originally reported 2.4%.
While this data is unlikely to significantly alter predictions that the Federal Reserve will reduce interest rates next week, it may decrease the likelihood of further rate cuts by the central bank early next year.
In another report from the Labor Department, it was revealed that first-time claims for U.S. unemployment benefits unexpectedly rose in the week ending December 7th. Initial jobless claims increased to 242,000, marking a 17,000 jump from the previous week's adjusted figure of 225,000. Economists had forecast a decrease to 220,000 from the initially reported 224,000.
On Wednesday, stocks generally trended upward, witnessing a strong rebound after the week's earlier decline. The Nasdaq demonstrated notable strength, closing above 20,000 for the first time.
The Nasdaq skyrocketed by 347.65 points, or 1.8%, to reach a new record closing high of 20,034.89. The S&P 500 also advanced by 49.28 points, or 0.8%, to 6,084.19.
Conversely, the Dow showed indecisiveness throughout the session, ultimately closing down 99.27 points, or 0.2%, at 44,148.56. The blue-chip index registered its fifth consecutive lower close, impacted by a decline in UnitedHealth (UNH) shares.
In global trading, most Asia-Pacific stock markets saw gains on Thursday. Japan's Nikkei 225 Index rose by 1.2%, and China's Shanghai Composite Index advanced by 0.9%.
European markets also experienced an upward trend. The French CAC 40 Index increased by 0.1%, while the U.K.'s FTSE 100 Index and Germany's DAX Index both rose by 0.2%.
In the commodities sector, crude oil futures slightly declined by $0.01 to $70.28 per barrel after rising $1.70 the previous day. Gold futures, after surging by $38.30 to $2,756.70 an ounce on Wednesday, fell by $17.40 to $2,739.30 an ounce.
In currency trading, the U.S. dollar is currently at 151.92 yen, slightly down from the 152.45 yen level at Wednesday's New York close. Against the euro, the dollar remains unchanged at $1.0496.
The material has been provided by InstaForex Company -
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