S&P 500 futures saw little change in early trading on Thursday, following a positive session on Wall Street that was bolstered by declining Treasury yields. The S&P 500 futures were up approximately 0.1%, while Nasdaq-100 futures advanced 0.4%. Dow Jones Industrial Average futures rose by 25 points, or 0.05%.
Earlier, the S&P 500 had ended its three-day losing streak on Wednesday. This reversal was driven by a pullback in yields on longer-dated U.S. Treasurys from multi-year highs, following the Treasury Department's announcement of a plan to alleviate pressure in the bond market. The department intends to more than double its repurchases of 10-, 20-, and 30-year debt in the coming months, a move that comes after the 30-year Treasury yield had reached a near 20-year high earlier in the week.
Despite the recent market upturn, some analysts remain cautious. Michael Schumacher, former head of macro at Wells Fargo, expressed a negative outlook, citing significant U.S. budget deficits and increased defense spending as potential drivers for rising long-term rates, a sentiment amplified by recent geopolitical tensions.
Looking ahead, investors are anticipating the weekly jobless claims report. Economists surveyed by Dow Jones expect first-time claims for the week ending August 15th to total 210,000. Additionally, Walmart is scheduled to release its fiscal second-quarter results before the market opens.
In international markets, Asian stocks showed strength. Japan's Nikkei 225 gained 0.89%, and the Topix rose 0.78%. South Korea's Kospi advanced 6.19%, with the Kosdaq up 2.16%. Australia's S&P/ASX 200 was 0.23% higher. Hong Kong's Hang Seng index climbed 1.13%, and China's CSI 300 increased by 0.21%.
European stocks opened broadly flat, with investor sentiment remaining muted. The pan-European Stoxx 600 index was slightly below the flat line, displaying a mixed picture across regional markets. London's FTSE 100 shed 0.2%, while France's CAC 40 and Germany's DAX were flat.
Gold prices saw a slight pullback after a significant gain in the previous session. Spot gold was trading 0.65% lower at $4,491.75 per ounce, while gold futures were marginally higher.
In significant corporate news, SK Hynix shares surged over 12% in Seoul following the announcement of a substantial stock buyback plan, accelerating its repurchase program and committing to shareholder returns exceeding 50% of its cumulative free cash flow from 2025 to 2027.
The U.S. national debt has now surpassed $40 trillion, a new record, driven by years of escalating budget deficits and stimulus spending during the COVID-19 pandemic.
