Futures Pointing To Initial Weakness On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a lower open on Thursday, with stocks likely to move to the downside after ending Wednesday's trading mixed following late-day volatility.

A negative reaction to earnings news from some big-name tech companies is likely to weigh on the markets early in the session.

Shares of Meta Platforms (META) are plunging by 9.7 percent in pre-market trading after the Facebook parent reported better than expected third quarter results but forecast an increase in AI spending.

Software giant Microsoft (MSFT) is also seeing notable pre-market weakness after reporting fiscal first quarter results that exceeded estimates but also saying capital spending growth will accelerate this fiscal year.

On the other hand, shares of Alphabet (GOOGL) are surging by 7.9 percent in pre-market trading after the Google parent reported third quarter results that beat expectations on both the top and bottom lines.

Drug giant Eli Lilly (LLY) is also likely to see initial strength after reporting better than expected third quarter results and boosting is full-year revenue guidance.

Upbeat news out of a highly-anticipated meeting between President Donald Trump and his Chinese counterpart Xi Jinping may also limit any early downside on Wall Street.

The U.S. has agreed to reduce fentanyl-linked tariffs on China to 10 percent from 20 percent, while China has agreed to resume purchases of U.S. soybeans

China will also suspend the implementation of new export controls on rare earths, and in return, the U.S. will suspend its 50 percent penetration rule on export controls

After turning in a strong performance throughout much of the trading session, stocks saw substantial volatility in late-day trading on Wednesday. The major averages showed wild swings back and forth across the unchanged line before closing mixed.

While the tech-heavy Nasdaq climbed 130.98 points or 0.6 percent to a new record closing high of 23,958.47, the S&P 500 edged down 0.30 points or less than a tenth of a percent to 6,890.59 and the Dow fell 74.37 points or 0.2 percent to 47,632.00.

The late-day volatility on Wall Street came in reaction to Federal Reserve Chair Jerome Powell's comments following the central bank's monetary policy announcement.

While the Fed lowered interest rates by another quarter point as widely expected, Powell's post-meeting remarks partly offset optimism about another rate cut in December.

Powell said a further reduction in rates in December is "not a foregone conclusion," noting Fed officials had "strongly differing views about how to proceed" at the final meeting of the year.

Highlighting the high level of uncertainty due to government shutdown delaying key data, Powell also said there's a "growing chorus" that feels the Fed should "wait a cycle" to continue cutting rates.

Following Powell's comments, CME Group's FedWatch Tool indicates the chances the Fed leaves rates unchanged in December have jumped to 34.1 percent from just 9.1 percent yesterday.

The Fed chief's remarks came after the central bank said it decided to lower the target range for the federal funds rate by 25 basis points to 3.75 percent to 4.0 percent.

The central bank once again cited a shift in the balance of risks, noting the downside risks to employment have risen in recent months.

The advance by the Nasdaq came as traders looked ahead to earnings news from several tech giants after the close of trading.

Despite the late-day volatility shown by the broader markets, computer hardware stocks continued to see substantial strength, driving the NYSE Arca Computer Hardware Index up by 6.3 percent to a record closing high.

Seagate Technology (STX) led the sector higher, skyrocketing by 19.1 percent after the data storage company reported better than expected fiscal first quarter results.

Oil service stocks also continued to turn in a strong performance amid a rebound by the price of crude oil, with the Philadelphia Oil Service Index jumping by 2.6 percent.

Semiconductor stocks also saw significant strength, while interest rate-sensitive commercial real estate and housing stocks came under pressure, dragging the Dow Jones U.S. Real Estate Index and the Philadelphia Housing Sector Index down by 2.6 percent and 2.3 percent, respectively.

Airline stocks also showed a notable moved to the downside on the day, resulting in a 1.4 percent loss by the NYSE Arca Airline Index.

Commodity, Currency Markets

Crude oil futures are falling $0.42 to $60.06 a barrel after rising $0.33 to $60.48 a barrel on Wednesday. Meanwhile, after climbing $17.60 to $4,000.70 an ounce in the previous session, gold futures are slipping $9.90 to $3,990.80 an ounce.

On the currency front, the U.S. dollar is trading at 154.23 yen versus the 152.71 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1571 compared to yesterday's $1.1599.

Asia

Asian stocks turned in a mixed performance on Thursday after Federal Reserve Chair Jerome Powell indicated that further interest rate cuts are not guaranteed. The Bank of Japan left interest rate unchanged as expected but hinted at future hikes as inflation remains above target.

The meeting between U.S. President Donald Trump and Chinese President Xi Jinping concluded, with Trump saying there will be a trade deal "pretty soon."

Trump announced that he would reduce fentanyl tariffs on China by from 20 percent to 10 percent, helping calm immediate tensions.

China's state media quoted Xi as saying that a "consensus" was reached with Trump on trade issues.

China's Shanghai Composite Index fell 0.7 percent to 3,986.90 and Hong Kong's Hang Seng Index dipped 0.2 percent to 26,282.69 as the high-stakes Xi-Trump meeting lacked surprises and Trump said Nvidia's Blackwell AI chips weren't discussed with Xi.

Japanese markets ended on a flat note after the Bank of Japan kept interest rates on hold. The Nikkei 225 Index finished marginally higher at 51,325.61, notching a record high earlier on the back of a weaker yen. The broader Topix Index settled 0.7 percent higher at 3,300.79.

Seoul stocks ended slightly higher as the United States and South Korea concluded a $350 billion trade agreement and Samsung Electronics delivered strong third quarter earnings. The $350 billion trade agreement features significant tariff reductions and investment commitments.

The Kospi edged up by 0.1 percent to 4,086.89, notching another record high. Shares of Samsung Electronics surged 3.6 percent.

Australian markets ended lower for a third straight session as investors continued to scale back expectations of an interest rate cut by the Reserve Bank of Australia.

The benchmark S&P/ASX200 Index fell 0.5 percent to 8,885.50, with real estate and consumer discretionary stocks pacing the declines. The broader All Ordinaries Index ended down 0.4 percent at 9,178.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rose 0.4 percent to 13,459.29, reaching its highest level in nearly three weeks.

Europe

European stocks have moved mostly lower on Thursday after Federal Reserve Chair Jerome Powell cautioned investors not to expect another interest rate cut in December and mega-cap U.S. technology companies reported mixed earnings results.

After a high-stakes meeting between U.S. President Donald Trump and his counterpart Xi Jinping wrapped up with few positive surprises, focus has shifted to the ECB's interest-rate decision later in the day.

The European Central Bank is set to keep interest rates unchanged for a third meeting, citing low inflation and steady growth.

In economic news, French economic growth accelerated in the third quarter despite political uncertainty and trade tensions, official data revealed.

Gross domestic product registered quarterly growth of 0.5 percent following a 0.3 percent rise in the second quarter, the statistical office INSEE reported. Growth was expected to ease to 0.2 percent.

The French CAC 40 Index is down by 0.9 percent, the U.K.'s FTSE 100 Index is down by 0.7 percent and the German DAX Index is down by 0.2 percent.

Swiss specialty chemicals firm Clariant rose nearly 2 percent after reporting a significant improvement in its Q3 profit margins.

Electrolux soared 18 percent. The Swedish home appliances maker reported a profit in its third quarter compared to prior year's loss.

ING surged 4.3 percent. After Q3 earnings beat expectations, the Dutch lender said it would launch a 1.1-billion-euro ($1.3 billion) share buyback.

Automaker Stellantis slumped 4.2 percent after warning of one-time charges in the second half of the year.

Germany's Volkswagen gained 1 percent despite reporting a 1.3-billion-euro ($1.52 billion) operating loss in the third quarter.

Airline Lufthansa soared 5 percent as Q3 operating earnings exceeded expectations.

French oil major TotalEnergies fell 1.2 percent after it reported a 2.4 percent drop in third-quarter earnings.

Lender Credit Agricole declined 2.2 percent after Q3 profit missed expectations.

Peer Societe Generale added 1.6 percent after reporting a better-than-expected 11 percent rise in third-quarter profit.

Spain's BBVA lost over 2 percent after Q3 profit fell 3.7 percent year-on-year.

Standard Chartered rose over 2 percent in London after reporting higher quarterly profit and lifting its income and return outlook.

U.S. Economic News

Federal Reserve Vice Chair for Supervision Michelle W. Bowman is scheduled to deliver opening remarks at the Economic Growth and Regulatory Paperwork Reduction Act Outreach Meeting at 9:55 am ET.