U.S. Stocks May Regain Ground Following Yesterday's Sell-Off

(RTTNews) - Following the sell-off seen over the course of the previous session, stocks may move back to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.7 percent.

Traders may look to pick up stocks at reduced levels following yesterday's steep losses on the heels of upbeat comments from President Donald Trump about trade talks.

Trump said in a post on Truth Social on Wednesday that "big progress" had been made in a meeting with the Japanese trade delegation.

"Had a very productive call with the President of Mexico yesterday," he added in a post this morning. "Likewise, I met with the highest level Japanese Trade Representatives. It was a very productive meeting. Every Nation, including China, wants to meet! Today, Italy!"

However, a steep drop by shares of UnitedHealth (UNH) is likely to weigh on the Dow, with the healthcare giant plunging by 18.5 percent in pre-market trading

The nosedive by UnitedHealth comes after the company reported weaker than expected first quarter earnings and cut its full-year profit forecast.

In U.S. economic news, the Labor Department released a report unexpectedly showing a modest decrease by first-time claims for U.S. unemployment benefits in the week ended April 12th.

The report said initial jobless claims dipped to 215,000, a decrease of 9,000 from the previous week's revised level of 224,000.

Economists had expected initial jobless claims to inch up to 225,000 from the 223,000 originally reported for the previous week.

A separate report released by the Commerce Department showed new residential construction in the U.S. pulled back by much more than expected in the month of March.

Stocks moved sharply lower early in the session on Wednesday and saw even further downside over the course of the trading day. The major averages all posted steep losses, with the tech-heavy Nasdaq under particularly heavy selling pressure.

The major averages climbed off their worst levels going into the end of the day but remained firmly negative. The Nasdaq plunged 516.01 points or 3.1 percent to 16,307.16, the S&P 500 tumbled 120.93 points or 2.2 percent to 5,275.70 and the Dow slumped 699.57 points or 1.7 percent to 39,669.39.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index surged by 1.6 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the French CAC 40 Index is down by 0.8 percent, the German DAX Index is down by 0.5 percent and the U.K.'s FTSE 100 Index is down by 0.4 percent.

In commodities trading, crude oil futures are surging $1.15 to $63.62 a barrel after jumping $1.14 to $62.47 a barrel on Wednesday. Meanwhile, after soaring $106 to $3,346.40 an ounce in the previous session, gold futures are edging down $4.40 to $3,342 an ounce.

On the currency front, the U.S. dollar is trading at 142.40 yen versus the 141.88 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1355 compared to yesterday's $1.1399.