U.S. Stocks May Add To Yesterday's Gains In Early Trading

(RTTNews) - The major U.S. index futures are currently pointing to a modestly higher open on Thursday, with stocks poised to add to the gains posted in yesterday's session.

Some traders may continue to look to pick up stocks at relatively reduced levels even after Wednesday's advance, as the major averages remain well off last week's record highs.

While concerns about an artificial intelligence bubble and the possibility of a near-term correction continue to weigh on investors' minds, the momentum for the markets currently still seems to be the upside.

Amid another comparatively quiet day on the U.S. economic front due to the ongoing government shutdown, global outplacement firm Challenger, Gray & Christmas released a report showing a sharp increase in layoff announcements in the month of October.

Challenger, Gray & Christmas said U.S.-based employers announced 153,074 job cuts in October, up 183 percent from the 54,064 job cuts announced in September and up 175 percent from the 55,597 cuts announced in the same month a year ago.

"Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes," said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

He added, "Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market."

Challenger, Gray & Christmas said employers have announced 1,099,500 job cuts through the first ten months of the year, marking the highest level of year-to-date job cuts since 2020.

Among individual stocks, shares of Snap (SNAP) are soaring by 19.5 percent in pre-market trading after the social media platform announced a $500 million stock buyback and provided strong fourth quarter revenue guidance.

Mobile technology company AppLovin (APP) is also seeing significant pre-market strength after reporting better than expected third quarter results.

On the other hand, shares of DoorDash (DASH) are plunging by 10.6 percent in pre-market trading after the food delivery company reported third quarter earnings that missed analyst estimates.

Following the sell-off seen during Tuesday's session, stocks turned in a strong performance throughout much of the trading day on Wednesday before once again coming under pressure late in the session.

The major averages showed a notable pullback in the final hour of trading but managed to end the day in positive territory.

The Nasdaq advanced 151.16 points or 0.7 percent to 23,499.80, the Dow climbed 225.76 points or 0.5 percent to 47,311.00 and the S&P 500 rose 24.74 points or 0.4 percent to 6,796.29.

The strength seen on Wall Street for most of the day came as some traders looked to pick up stocks at relatively reduced levels following the steep drop on Tuesday, which partly reflected concerns about valuations.

Positive sentiment may also have been generated in reaction to some upbeat U.S. economic data, including a report from payroll processor ADP showing private sector employment in the U.S. rebounded by more than expected in the month of October.

ADP said private sector employment climbed by 42,000 jobs in October after slipping by a revised 29,000 jobs in September.

Economists had expected private sector employment to rise by 25,000 jobs compared to the loss of 32,000 jobs originally reported for the previous month.

The Institute for Supply Management also released a report showing U.S. service sector activity returned to expansion in the month of October.

The ISM said its services PMI climbed to 52.4 in October after falling to 50.0 in September, with a reading above 50 indicating growth. Economists had expected the index to inch up to 50.8.

With the bigger than expected increase, the services PMI reached its highest level since hitting 53.5 in February.

Despite the late-day pullback by the broader markets, airline stocks continued to see substantial strength, with the NYSE Arca Airline Index soaring by 5.8 percent.

Considerable strength also remained visible among biotechnology stocks, as reflected by the 3.1 percent surge by the NYSE Arca Biotechnology Index.

Computer hardware and semiconductor stocks also saw significant strength on the day, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index jumping by 3.1 percent and 3.0 percent, respectively.

Gold stocks also turned in a strong performance amid an increase by the price of the precious metal, while housing and software stocks moved to the downside.

Commodity, Currency Markets

Crude oil futures are rising $0.41 to $60.01 a barrel after tumbling $0.96 to $59.60 a barrel on Wednesday. Meanwhile, after jumping $32.40 to $3,992.90 an ounce in the previous session, gold futures are climbing $31.70 to $4,024.60 an ounce.

On the currency front, the U.S. dollar is trading at 153.47 yen versus the 154.11 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1537 compared to yesterday's $1.1491.

Asia

Asian markets rose on Thursday after two days of declines. Traders pondered the outlook for interest rates after the release of strong U.S. economic data and the announcement of 2025 election results that were good to Democrats with wins in several major races, including governor's races in two states.

Meanwhile, after conservative justices posed tough questions for the Trump administration, contracts tied to whether the U.S. Supreme Court would rule in favor of Trump's tariffs slipped to around 30 percent from nearly 50 percent before Wednesday's hearing.

A ruling is expected before the end of the year. Analysts said that no matter how the Supreme Court's ruling eventually looks, tariffs are here to stay, and the Trump administration will use other tools to impose duties on countries that discriminate against U.S. commerce.

China's Shanghai Composite Index jumped 1.0 percent to 4,007.76 after the country raised $4 billion at rates equivalent to U.S. Treasury yields in its return to the international bond market.

Hong Kong's Hang Seng Index rallied 2.1 percent to 26,485.90 as buyers stepped in after a brief retreat in technology shares.

Japanese markets rose sharply as signs of a resilient U.S. labor market fueled risk appetite. Investors also digested data that showed Japan's services sector continued its growth for the seventh consecutive month in October.

The Nikkei 225 Index shot up 1.3 percent to 50,883.68, while the broader Topix Index settled 1.4 percent higher at 3,313.45.

Chip-related Advantest surged 3.2 percent and technology investor SoftBank Group advanced 2.9 percent. Konica Minolta soared 15.5 percent after posting turnaround results.

Seoul stocks rebounded after suffering steep losses in the previous session on concerns surrounding an AI bubble. The Kospi climbed 0.6 percent to 4,026.45 following a nearly 3 percent slump the previous day. Financial and utility firms topped the gainers list, while cosmetics and shipbuilding companies lost ground.

Australian markets eked out modest gains to snap a two-day losing streak. The benchmark S&P/ASX 200 Index rose 0.3 percent to 8,828.30 as an increase in gold prices boosted mining stocks. The broader All Ordinaries Index closed up 0.3 percent at 9,098.60.

James Hardie Industries plunged 12.7 percent after one of its U.S. building-materials peers issued a bearish outlook on demand.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index dropped 0.3 percent to 13,576.81 after briefly touching a new record high earlier in the session.

Europe

European stocks have drifted lower on Thursday despite a broad market recovery in the U.S. and in overnight trading in Asia.

Regional losses remained limited somewhat after official data showed Germany's industrial production recovered in September, driven by a rebound in the auto industry.

German industrial output expanded 1.3 percent from August, when it was down 3.7 percent, Destatis reported.

While the French CAC 40 Index is down by 0.6 percent, the German DAX Index is down by 0.2 percent and the U.K.'s FTSE 100 Index is down by 0.1 percent.

In corporate news, A.P. Møller - Mærsk shares have moved sharply lower. The Danish shipping group reported a fall in Q3 net income due to falling freight rates and global trade headwinds.

Lender Commerzbank has also moved to the upside after reporting third-quarter results that fell short of analysts' estimates.

Swedish construction and development company Skanska has also tumbled after its third quarter profit came in below market expectations.

Meanwhile, German online fashion marketplace Zalando has soared after reporting a strong third quarter, boosted by its acquisition of rival About You in July 2025.

Consumer goods and adhesives maker Henkel has also shown a notable move to the upside after it reported higher organic sales in the third quarter.

ArcelorMittal, the world's second-largest steelmaker, has also jumped after it reported a 31.35 percent rise in net income in the September quarter.

Telecoms group Swisscom has also advanced after it reported a 36.9 percent increase in revenue to CHF 11.175 billion for the first nine months of 2025.

British pharmaceutical giant AstraZeneca has also risen after reaffirming its full-year guidance.

U.S. Economic News

Federal Reserve Governor Michael Barr is scheduled to participate in a discussion on "Community Development" hosted by Fed Communities at 11 am ET.

Also at 11 am ET, New York Federal Reserve President John Williams is due to deliver a lecture on "The Natural Rate of Interest" before an event organized by the Goethe University Institute for Monetary and Financial Stability.

Cleveland Federal Reserve Bank President Beth Hammack is scheduled to before an Economic Club of New York webinar at 12 pm ET.

At 3:30 pm ET, Federal Reserve Governor Christopher Waller is due to participates in a "Central Banking and the Future of Payments" panel before the Bank of Canada 2025 Annual Economic Conference.

Philadelphia Federal Reserve President Anna Paulson is scheduled to speak on "The Federal Reserve Bank of Philadelphia's Consumer Finance Institute" before the New Perspectives on Consumer Behavior in Credit and Payments Markets Conference 2025 at 4:30 pm ET.

At 5:30 pm ET, St. Louis Federal Reserve President Alberto Musalem is due to speak on the U.S. economy and monetary policy before Fixed Income Analysts Society, Inc.