Stock futures rose modestly on Thursday night, as Wall Street appeared to be building a strong close in afternoon trade.
Futures contracts linked to the Dow Jones Industrial Average were up about 34 points, or 0.1%. Those of the S&P 500 and Nasdaq 100 added 0.2% and 0.3%, respectively.
The move in the futures comes after stocks jumped in Thursday afternoon trading, with the Dow fluctuating more than 500 points, as cyclical trading gained momentum. The strong close broke a recent trend of bad finishes on Wall Street and reduced market losses for the week so far. The Dow and S&P 500 are now down less than 0.1% for the week, while the Nasdaq Composite is in the red at 1.8%.
“If you are positioned the way we are, which is for a cyclical recovery and overlapping the value sectors, you certainly cannot run a victory lap here. But it is good to see, after the past six days, that some of the trends that have been in place for most of the six months seem to be reasserting themselves, “said Jason Trennert, CEO of Strategas Research Partners, at CNBC’s” Closing Bell “.
Futures were boosted by bank stocks, which rose after the Fed announced that banks could resume buybacks and increase dividends from the end of June. The central bank originally said it would lift restrictions from the pandemic era in the first quarter, but even the delayed move gives investors more clarity.
“The banking system remains a source of strength and returning to our normal structure after this year’s stress test will preserve that strength,” said Vice President for Supervision Randal Quarles in a statement.
JPMorgan’s and Citigroup’s shares rose slightly during the trading period, along with other major banks.
Regarding the economic data, investors will have a new view of the possibilities of inflation on Friday, with reports of personal income and consumption expenses due in February.