U.S. stock futures are pointing to a firmer open on Thursday, suggesting equities could recover after finishing Wednesday’s uneven session slightly in the red.
Contracts extended gains following fresh Labor Department data showing that initial claims for unemployment benefits declined less than economists had anticipated last week.
According to the report, first-time jobless claims fell by 5,000 to 227,000 from the prior week’s revised figure of 232,000. Economists had forecast a drop to 220,000 from the previously reported 231,000 level.
With claims still hovering at relatively elevated levels, the latest figures may temper the impact of Wednesday’s stronger-than-expected employment report.
That earlier jobs release underscored resilience in the labor market but also dampened hopes for imminent interest rate cuts from the Federal Reserve.
Attention now turns to Friday’s consumer price index (CPI) report, due before the opening bell.
“Forecasts suggest the critical core CPI measure could ease to around 2.5%, marking a near five-year low,” said Daniela Hathorn, Senior Market Analyst at Capital.com. “If inflation comes in line with — or ideally below — expectations, the strength of the labor market may become secondary.”
She added, “A softer inflation print would keep rate cuts firmly priced in and could restore upward momentum in risk assets.”
On Wednesday, stocks initially moved higher following the January payrolls report but quickly reversed course and spent the remainder of the session fluctuating around the flatline.
By the close, the Dow Jones Industrial Average had slipped 66.74 points, or 0.1%, to 50,121.40. The Nasdaq Composite lost 36.01 points, or 0.2%, to 23,066.47, while the S&P 500 edged down 0.34 points to 6,941.47.
The Labor Department reported that nonfarm payrolls increased by 130,000 in January, following a downwardly revised gain of 48,000 in December. Economists had projected a 70,000 increase, compared with the initially reported 50,000 rise in the prior month.
The unemployment rate dipped to 4.3% from 4.4%, defying expectations for no change.
However, the report also included a sharp downward revision to 2025 job creation, with employment growth adjusted to 181,000 from a previously reported 584,000.
“One big takeaway from today’s nonfarm payroll report is the 2025 average monthly gain in payrolls was 15,000,” said Jeffrey Roach, Chief Economist for LPL Financial. “Labor demand came to a standstill last year.”
The solid January data may have further reduced the likelihood of near-term rate cuts, offsetting the initial enthusiasm in equities.
Sector-wise, energy shares outperformed alongside rising crude prices. The Philadelphia Oil Service Index climbed 3.1%, while the NYSE Arca Oil Index advanced 2.8%.
Gold-related stocks also rallied as bullion prices strengthened, lifting the NYSE Arca Gold Bugs Index by 2.6%.
Semiconductor, computer hardware, and natural gas stocks recorded notable gains, while airlines, software companies, and brokerage firms lagged.