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

(RTTNews) - Following the sell-off seen late in the previous session, stocks are likely to 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 0.6 percent.

Technology stocks may help lead an early rebound on Wall Street, as reflected by the 1.6 percent jump by the tech-heavy Nasdaq 100 futures.

Bargain hunting may contribute to initial strength among tech stocks after the Nasdaq plunged to a three-month closing low on Wednesday. The Dow and the S&P 500 also ended the session at their lowest closing levels in well over a month.

Microsoft (MSFT) is likely to help lead the tech rally, with the software giant soaring by 9.2 percent in pre-market trading.

The spike by Microsoft comes after the company reported better than expected quarterly earnings amid strength in its Azure business.

On the other hand, shares of Meta Platforms (META) are plunging by 9.7 percent in pre-market trading after the Facebook parent provided disappointing revenue growth guidance.

"This reporting season has become less about headline results and more about proving that unprecedented AI spending can generate sustainable profitability," said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, "With Apple and Amazon still to report, the market's verdict on the AI investment cycle remains far from settled."

In U.S. economic news, the Commerce Department released a report showing consumer prices edged down in line with estimates in the month of June. The annual rate of growth also slowed in line with expectations.

After tumbling early in the session on Wednesday, stocks showed a significant recovery over the course of the afternoon before seeing substantial volatility late in the day.

The Nasdaq and S&P 500 reached positive territory going into the final hour of trading only to nosedive going into the end of the session.

The major averages all finished the day sharply lower, just off their worst levels. The Dow plunged 1,153.18 points or 2.2 percent to 51,594.14, the Nasdaq tumbled 433.97 points or 1.7 percent to 24,442.94 and the S&P 500 slumped 112.63 points or 1.5 percent to 7,316.15.

With the steep losses on the day, the Nasdaq dropped to a three-month closing low, while the Dow and the S&P 500 fell to their lowest closing levels in well over a month.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Thursday. Japan's Nikkei 225 Index advanced by 0.7 percent, while China's Shanghai Composite Index slid by 0.6 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index is up by 0.9 percent, the U.K.'s FTSE 100 Index is up by 0.4 percent and the German DAX Index is up by 0.1 percent.

In commodities trading, crude oil futures are sliding $0.62 to $83.84 a barrel after soaring $5.20 to $84.46 a barrel on Wednesday. Meanwhile, after edging down $2.40 to $4,036.30 an ounce in the previous session, gold futures are jumping $38.60 to $4,074.90 an ounce.

On the currency front, the U.S. dollar is trading at 162.78 yen versus the 163.38 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1476 compared to yesterday's $1.1375.