U.S. Stocks May Move To The Downside In Early Trading

(RTTNews) - Following the volatility seen late in the previous session, stocks are likely to move to the downside in early trading on Thursday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.4 percent.

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.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. Japan's Nikkei 225 Index closed marginally higher and South Korea's Kospi Inched up by 0.1 percent, while Hong Kong's Hang Seng Index dipped by 0.2 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While 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.

In commodities trading, 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.