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US Stock Futures Ease Lower as Investors Digest Dovish Fed Minutes Ahead of Thursday’s Initial Claims Report

By:
James Hyerczyk
Published: Jul 8, 2021, 04:39 UTC

Economists expect to see 350,000 first-time applicants for unemployment benefits for the week ended July 3, according to Dow Jones.

US Stock Index Futures

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U.S. stock index futures are inching lower early Thursday after an early attempt to rally failed to gain any traction following record setting closes by the benchmark S&P 500 and the tech-weighted NASDAQ Composite.

Looking ahead to Thursday’s session, investors will pore over the Labor Department’s latest jobless claims figures. The weekly update offers Wall Street regular insight into the pace of layoffs in the U.S. economy, which has been declining amid the COVID-19 vaccine rollout.

Economists expect to see 350,000 first-time applicants for unemployment benefits for the week ended July 3, according to Dow Jones.

At 04:11 GMT, September E-mini S&P 500 Index futures are trading 4341.00, down 8.75 or -0.20%. September E-mini Dow Jones Industrial Average futures are at 34483, down 85 or -0.25% and September E-mini NASDAQ-100 Index futures are at 14784.25, down 18.00 or -0.12%.

Wednesday Recap – S&P 500, NASDAQ Post Record Closing Highs after Fed Minutes

U.S. stocks ended higher on Wednesday and the S&P 500 and NASDAQ notched record closing highs after minutes from the last Federal Reserve meeting indicated officials may not be ready yet to move on tightening policy.

According to the minutes of the U.S. central bank’s June policy meeting, Fed officials felt substantial further progress on the economic recovery “was generally seen as not having yet been met,” but agreed they should be poised to act if inflation or other risks materialized.

Treasury yields edged lower following the Fed minutes, while stocks mostly edged higher. The minutes reflected a divided Fed wrestling with new inflation risks but still relatively high unemployment.

After its meeting and statement on June 16, investors began to anticipate the Fed would move more quickly to tighten than previously expected.

Wall Street has been concerned about inflation, with investors moving between economy-linked value stocks and growth names in the past few sessions, Reuters said.

China’s market regulator said on Wednesday it has fined a number of internet companies including Didi Chuxing, Tencent and Alibaba for failing to report earlier merger and acquisition deals for approval, according to a statement on the website of the State Administration of Market Regulation (SAMR).

The regulator fined the companies 500,000 Yuan each case, for not seeking approval in 22 deals, citing the country’s anti-monopoly laws.

Ride-hailing giant Didi, still fresh on the heels of its IPO on the New York Stock Exchange, has seen its shares plunge as China launched investigations on national security grounds and removed its App from app stores.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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