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Futures Pointing To Mixed Open On Wall Street

The major U.S. index futures are pointing to a mixed open on Thursday, as the Dow futures have moved to the downside but the Nasdaq futures are notably higher.

Tech stocks may extend the strong rebound seen on Wednesday, which came on the heels of a substantial three-day sell-off.

Shares of Apple (AAPL) are seeing notable strength in pre-market trading, and the tech giant has been a key driver of the sector over the past several days.

Overall trading activity may be somewhat subdued, however, as traders express some uncertainty about the near-term outlook for the markets following recent volatility.

Stocks showed a strong move to the upside during trading on Wednesday, regaining ground following the sell-off seen over the three previous sessions. The major averages all climbed firmly into positive territory but remain well off their recent highs.

The major averages pulled back off their best levels going into the close but held on to strong gains. The Dow jumped 439.58 points or 1.6 percent to 27,940.47, the Nasdaq soared 293.87 points or 2.7 percent to 11,141.56 and the S&P 500 surged up 67.12 points or 2 percent to 3,398.96.

The rebound on Wall Street came as some traders looked to pick up stocks at relatively reduced levels following the recent sell-off.

Technology stocks showed a substantial rebound on the day after leading the markets lower over the past few sessions.

Tech giants Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) posted standout gains, partly offsetting their recent losses.

With Microsoft helping to lead the way higher, software stocks showed a notable move to the upside on the day. Reflecting the strength in the sector, the Dow Jones U.S. Software Index surged up by 3.7 percent.

Considerable strength was also visible among semiconductor stocks, as reflected by the 2.9 percent spike by the Philadelphia Semiconductor Index.

Outside of the tech sector, gold stocks moved sharply higher over the course of the session, driving the NYSE Arca Gold Bugs Index up by 4.8 percent.

The rally by gold stocks came amid an increase by the price of the precious metal, with gold for December delivery climbing $11.70 to $1,954.90 an ounce.

Chemical, housing and retail stocks also saw significant strength on the day, reflecting broad based buying interest on Wall Street.

Meanwhile, airline stocks were among the few groups to buck the uptrend, resulting in a 2 percent slump by the NYSE Arca Airline Index.

Commodity, Currency Markets

Crude oil futures are sliding $0.54 to $37.51 a barrel after jumping $1.29 to $38.05 a barrel on Wednesday. Meanwhile, after climbing $11.70 to $1,954.90 an ounce in the previous session, gold futures are rising $9.20 to $1,964.10 an ounce.

On the currency front, the U.S. dollar is trading at 106.03 yen versus the 106.18 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1889 compared to yesterday's $1.1803.

Asia

Asian stocks turned in a mixed performance on Thursday as caution prevailed following the tech-led rebound on Wall Street. Investors were looking ahead to the European Central Bank's monetary policy decision due later in the day.

Shares in China and Hong Kong declined, as investors remained cautious despite the rebound on Wall Street.

China's Shanghai Composite Index dropped 19.80 points, or 0.6 percent, to close at 3,234.82, while Hong Kong's Hang Seng Index fell 155.39 or 0.6 percent to finish at 24,313.54. Yum China Holdings fell 4 percent on its debut in Hong Kong.

Japanese shares rallied, while the safe-haven yen weakened against the dollar. The benchmark Nikkei 225 Index gained 202.93 points or 0.9 percent to close at 23,235.47, while the broader Topix added 19.46 points, or 1.2 percent, to finish at 1,624.86.

Market heavyweight SoftBank Group ended a five-day losing streak, gaining 2.2 percent, while Sony added 1.7 percent.

The Australian market also closed higher, with tech and mining stocks among the leading gainers. News that Victoria's daily coronavirus infection figures dropped on Thursday after rising over the previous two days boosted sentiment.

The benchmark S&P/ASX 200 Index added 29.90 points, or 0.5 percent, to close at 5,908.50 and the broader All Ordinaries advanced 31.10 points, or 0.5 percent, to settle at 6,090.00.

In the tech space, Appen rose 3.2 percent, Afterpay advanced 2.1 percent and WiseTech Global added 0.4 percent.

Among the major miners, Rio Tinto advanced 1.4 percent and BHP Group added 0.5 percent, while Fortescue Metals declined 0.6 percent.

Myer Holdings reported a net loss for the full year, while its sales dropped more than 15 percent and the department store group said it will not pay a final dividend to shareholders. The company's shares tumbled 17.7 percent.

Seoul stocks pared some early gains but still closed higher. The benchmark Kospi advanced 20.67 points or 0.9 percent to finish at 2,396.48.

Market bellwether Samsung Electronics rose 1.4 percent, while chipmaker SK Hynix dropped 0.9 percent. Kakao Games Corp., the gaming subsidiary of messaging app operator Kakao Corp., made a strong debut in Seoul, with its stock hitting the daily permissible limit of 30 percent.

Europe

European stocks are seeing modest weakness after the European Central Bank's monetary policy announcement. Traders are also digesting a slew of economic data from the zone.

The ECB left interest rates unchanged and said it would continue its purchases under the pandemic emergency purchase programme.

While the German DAX Index has edged down by 0.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both down by 0.3 percent.

In economic news, U.K. home prices increased at the strongest pace since 2016 as almost all regions logged price increases, survey data from the Royal Institution of Chartered Surveyors showed.

The house price balance rose to +44% in August, the highest reading since 2016, from +13% registered in July. The expected balance was +25%.

Statistical office Insee reported French industrial production expanded for the third straight month in July, but the pace of increase was the weakest in the current sequence of growth.

Industrial production climbed 3.8% month-on-month, slower than the 13% spike seen in June. This was also weaker than the expected increase of 5%.

Likewise, manufacturing growth eased to 4.5% from 14.8% a month ago. Mining and quarrying output remained flat in July and construction output expanded 5% in July.

Italy's industrial production grew more than expected in July, driven by capital and intermediate goods, according to data from the statistical office Istat.

Industrial output climbed 7.4% from June, when it was up 8.2%. Economists had forecast a monthly increase of 3.5%.

U.S. Economic Reports

First-time claims for U.S. unemployment benefits came in unchanged in the week ended September 5th, the Labor Department revealed in a report on Thursday.

The report said initial jobless claims came in at 884,000, unchanged from the previous week's revised level. Economists had expected jobless claims to drop to 846,000 from the 881,000 originally reported for the previous week.

The Labor Department said the less volatile four-week moving average fell to 970,750, a decrease of 21,750 from the previous week's revised average of 992,500.

A separate report from the Labor Department showed producer prices in the U.S. increased by slightly more than expected in the month of August.

The Labor Department said its producer price index for final demand rose by 0.3 percent in August after climbing by 0.6 percent in July. Economists had expected prices to edge up by 0.2 percent.

Excluding food and energy prices, core producer prices increased by 0.4 percent in August following a 0.5 percent advance in July. Core prices were also expected to tick up by 0.2 percent.

At 11 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended September 4th.

Crude oil inventories are expected to decrease by 1.3 million barrels after tumbling by 9.4 million barrels in the previous week.

The Treasury Department is also scheduled to announce the details of this month's auction of twenty-year bonds at 11 am ET.

At 1 pm, the Treasury Department is due to announce the results of its auction of $23 billion worth of thirty-year bonds.

Stocks In Focus

Shares of RH (RH) are moving sharply higher in pre-market trading after the home furnishings retailer reported fiscal second quarter results that beat analyst estimates on both the top and bottom lines.

Medical lab operator Quest Diagnostics (DGX) is also likely to see initial strength after raising its full-year earnings and revenue guidance.

On the other hand, shares of GameStop (GME) are likely to come under pressure after the video game retailer reported a wider than expected fiscal second quarter loss on revenues that missed analyst estimates.

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