US Stock Futures Rise, Market Eyes Bounceback After Powell's Rate Remarks: Traders Await Netflix Earnings And Labor Data

The stock market is on track to recover from Wednesday’s plunge, with the major U.S. index futures moderately higher in the Asian session. 

Thursday’s session will bring its fair share of economic and earnings catalysts as the market strives to close the holiday-shortened week on a high note. Trading volume, however, could be light due to Good Friday, rendering any move less credible.

At last check, the S&P 500, Nasdaq 100, and Dow futures were up 0.54%, 0.61%, and 0.48%, respectively.

On the economic front, traders may pay close attention to the weekly jobless claims data, regional manufacturing activity data, and a speech by Federal Reserve Governor Michael Barr.

Also on tap is the Commerce Department’s housing starts and building permits report for March.

Dow component UnitedHealth Group, Inc. (UNH), financial services company American Express Co. (AXP), homebuilder D.R. Horton, Inc. (DHI), brokerage Charles Schwab Corp. (SCHW), and a slew of regional banking companies are due to report before the market opens.

Streaming giant Netflix, Inc.’s (NFLX) stock could also draw heavy attention. The company is scheduled to announce results after the close. Analysts are largely hopeful that the company will outperform in the near and long term.

Fund manager Louis Navellier remains hopeful of a strong market bounceback. The strategist said that with the U.S. and Japan expected to begin trade negotiations soon, he expects China to come around and negotiate to bring the sky-high tariffs to more reasonable levels. This would kick off a rally, he added.

On Wednesday, Powell spooked U.S. stocks by signaling that the central bank would prefer to wait before raising interest rates, given the prospects of rising inflation and weakening labor market conditions. 

Tech weakness set in motion by Nvidia Corp. (NVDA) and Advanced Micro Devices, Inc. (AMD) disclosures about the impact of the new U.S. China chip export restrictions also dented risk appetite.

The Nasdaq Composite fared the worst as the tech-heavy index plunged 516 points or 3.07% to 16,307.16, and the S&P 500 dropped over 120 points or 2.24% before settling at 5,275.70.

The 30-stock Dow Jones Industrial Average fell below the 40,000 barrier as the blue-chip average fell nearly 700 points or 1.73% to 39,669.39.

Small-cap stocks fared relatively better, as seen by the more modest 1.03% drop by the Russell 2,000 Index.

CNBC reported that the 10-year Treasury yield fell four basis points to 4.285% on Wednesday. Bond market traders reacted to Powell’s comments and the stronger-than-expected March retail sales data.

Notwithstanding the risk-off mood, crude oil prices rose for a second straight day amid U.S. efforts to crack down on Iranian energy exports. Gold rode higher on its safe-haven appeal, rising past the $3,300 level per troy ounce.

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