Futures Pointing To Initial Rebound On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a higher open on Thursday, with stocks likely to regain ground following the sell-off seen over the course of the previous session.

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.

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.

The sell-off on Wall Street came amid a steep drop by shares of Nvidia (NVDA), with the AI darling plunging 6.9 percent on the day.

The slump by Nvidia came after the company said its first quarter results are expected to include up to approximately $5.5 billion of charges associated with its H20 integrated circuits.

Nvidia noted in an SEC filing that the U.S. government now requires a license for the export of the graphics processing units to China and other countries.

Dutch chipmaker ASML (ASML) also tumbled by 7.1 percent after warning of increased uncertainty around its outlook for 2025 and 2026 due to U.S. tariffs.

"While investors may have been hoping for a change, once again markets have been buffeted by 'Storm Donald' as the US president's trade policy continues to exert pressure on global companies," says AJ Bell head of financial analysis Danni Hewson.

Stocks saw further downside in afternoon trading following remarks by Federal Reserve Chair Jerome Powell even though his comments largely mirrored those he delivered earlier this month.

Powell highlighted the uncertainty surrounding Trump's tariffs but reiterated his belief that the Fed is well positioned to wait for greater clarity before considering any adjustments to its policy stance.

Meanwhile, traders largely shrugged off a slew of U.S. economic data, including a Commerce Department report showing a sharp increase by retail sales in the month of March.

The Commerce Department said retail sales shot up by 1.4 percent in March after inching up by 0.2 percent in February. Economists had expected retail sales to jump by 1.3 percent.

The surge by retail sales partly reflected a significant rebound by sales by motor vehicles and parts dealers, which soared by 5.3 percent in March after tumbling by 1.6 percent in February.

Excluding the sharp increase in auto sales, retail sales rose by 0.5 percent in March after climbing by 0.7 percent in February. Ex-auto sales were expected to rise by 0.3 percent.

A separate report released by the Federal Reserve showing industrial production decreased by slightly more than expected in March due to a steep drop by utilities output.

The Fed said industrial production fell by 0.3 percent in March after climbing by an upwardly revised 0.8 percent in February.

Economists had expected industrial production to dip by 0.2 percent compared to the 0.7 percent increase originally reported for the previous month.

Semiconductor stocks saw substantial weakness amid the slumps by Nvidia and ASML, resulting in a 4.1 percent nosedive by the Philadelphia Semiconductor Index.

Considerable weakness also emerged among software stocks, as reflected by the 3.1 percent plunge by the Dow Jones U.S. Software Index.

Brokerage stocks also showed a significant move to the downside, dragging the NYSE Arca Broker/Dealer Index down by 2.3 percent.

Transportation, networking and retail stocks also saw notable weakness, while gold stocks bucked the downtrend as the price of the precious metal soared to new record highs.

Commodity, Currency Markets

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.

Asia

Asian stocks advanced on Thursday despite escalating U.S.-China tensions and warnings from Federal Reserve Chair Jerome Powell that trade tensions risk undermining the U.S. central bank's employment and inflation goals.

Oil extended overnight gains after the U.S. issued new sanctions targeting Chinese importers of Iranian oil. Treasuries saw modest buying and the dollar ticked up slightly, while gold hovered near record levels.

China's Shanghai Composite Index edged up by 0.1 percent to 3,280.34. Beijing said it is ready to restart trade talks with the Trump administration, provided that certain key conditions are fulfilled.

Among the primary demands, China has called for more respect, a consistent trade policy, and attention to its concerns on sanctions and Taiwan.

Hong Kong's Hang Seng Index ended 1.6 percent higher at 21,395.14, with property and technology stocks pacing the gainers.

Japanese markets rallied after Trump said negotiators made "big progress" in talks to strike a tariff deal with Japan. A weaken yen also boosted sentiment after the country's chief trade negotiator said currencies weren't discussed.

The Nikkei 225 Index jumped 1.4 percent to 34,377.60, while the broader Topix Index settled 1.3 percent higher at 2,530.23.

Advantest jumped 3.5 percent and SoftBank rose over 1 percent after Taiwanese chip major TSMC posted first-quarter profit that topped analyst estimates.

Seoul stocks rose as the Bank of Korea kept its interest rate unchanged but hinted at possible cuts in May amid rising economic risks partly spurred by U.S. tariffs.

The Kospi climbed 0.9 percent to 2,470.41. Hanwha Aerospace rallied 3.6 percent after regulatory changes affected its share issuance.

Australian markets rose notably as higher oil prices following further sanctions on Iran's oil exports boosted energy stocks.

The benchmark S&P/ASX 200 Index gained 0.8 percent to close at 7,819.10, while the broader All Ordinaries Index ended up 0.8 percent at 8,021.90.

Clarity Pharmaceuticals soared 13 percent after it signed a commercial-scale production agreement with Nusano for its radioactive isotope copper-64, which is used in cancer treatment and diagnostic imaging.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rose 0.4 percent to 12,118.99.

Europe

European stocks have drifted lower on Thursday as investors worry about the impact of U.S. President Donald Trump's erratic trade policies on inflation, interest rates and global growth.

Traders are also digesting the latest batch of earnings as well was the European Central Bank's widely expected decision to lower interest rates by 25 basis points.

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 ahead of a four-day-long weekend on account of Good Friday and Easter Monday.

Hexagon AB, a digital reality solutions company, has moved notably lower after it agreed to buy UCRS software assets from CONET Communications GmbH.

Luxury fashion house Hermes International has also moved to the downside despite reporting a 9 percent increase by first quarter revenue.

IT group Atos SE has also declined as it reported an organic decline in first-quarter revenue.

Meanwhile, Evotec SE has surged. The biotechnology company gave its 2028 outlook ahead of estimates after revealing higher revenues for fiscal 2024.

ABB has also jumped as it posted a 22 percent rise in profit in the first quarter of 2025 and announced plans to spin off its robotics division as a separately listed company.

Meat delivery company Deliveroo has also moved sharply higher after reiterating its full-year guidance.

U.S. Economic News

First-time claims for U.S. unemployment benefits unexpectedly saw a modest decrease in the week ended April 12th, according to a report released by the Labor Department on Thursday.

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.

The Labor Department said the less volatile four-week moving average also edged down to 220,750, a decrease of 2,500 from the previous week's revised average of 223,250.

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

The Commerce Department said housing starts plunged by 11.4 percent to an annual rate of 1.324 million in March after surging by 9.8 percent to a revised rate of 1.494 million in February.

Economists had expected housing starts to tumble by 5.4 percent to an annual rate of 1.420 million from the 1.501 million originally reported for the previous month.

Meanwhile, the report said building permits jumped by 1.6 percent to an annual rate of 1.482 million in March after falling by 1.0 percent to a revised rate of 1.459 million in February.

Building permits, an indicator of future housing demand, were expected to decrease by 0.4 percent to an annual rate of 1.450 million from the 1.456 million originally reported for the previous month.

The Federal Reserve Bank of Philadelphia also released a report on Thursday showing a steep drop by its reading on regional manufacturing activity in the month of April.

The Philly Fed said its diffusion index for current general activity plummeted to a negative 26.4 in April from a positive 12.5 in March, with a negative reading indicating contraction. Economists had expected the index to slump to a positive 2.0.

Looking ahead, the Philly Fed said future activity indicators continue to suggest subdued expectations for growth over the next six months, although the diffusion index for future general activity inched up to 6.9 in April from 5.6 in March.

At 11 am ET, the Treasury Department is scheduled to announce the details of this month's auctions of two-year, five-year and seven-year notes.

Federal Reserve Board Governor Michael Barr is due to speak on "Cybersecurity in the Banking System" and participate in a moderated discussion before the 2025 State-of-the-Field Conference on Cyber Risk to Financial Stability at 11:45 am ET.