U.S. stock futures were up on Thursday morning after falling in the regular trading session and snapping a massive two-day rally.
Dow Jones Industrial Average futures rose 118 points, or 0.39%. S&P 500 and Nasdaq 100 futures rose 0.43% and 0.55% respectively.
Stocks battled to maintain the winning streak on Wednesday, but ultimately fell short. The Dow Jones closed down around 42 points, or 0.14%, rebounding from a session low of nearly 430 points. The S&P 500 and the Nasdaq Composite fell 0.20% and 0.25% respectively.
Rising yields added pressure on stocks on Wednesday. The 10-year US Treasury rate rose above 3.7% from 3.6% the previous day.
“Few are convinced that the recent move is more than a bear market rally, with skepticism about sustainability,” said Mark Hackett, head of investment research at Nationwide. “Confidence remains low, ranging from CEOs, small businesses, consumers and investors. Universal pessimism is bullish from an opposite view, although the timing of the swing of the pendulum is difficult to predict.”
Investors continue to watch economic data to see if inflation is slowing or if the Federal Reserve’s rate hikes are pushing the United States closer to a recession.
ADP data showed the labor market remained strong among private businesses in September, when companies added 208,000 jobs. This exceeded the Dow Jones estimate of 200,000 jobs. On Friday, the Bureau of Labor Statistics’ September jobs report will be released, giving the central bank and investors another piece of data.
Some companies also declare profits. On Thursday, Constellation Brands will report earnings before the opening bell, and Levi Strauss will report after the market closes.