(Reuters) – U.S. stock index futures rose slightly on Thursday, after reversing a selloff to close higher in the previous session, with focus on upcoming economic data in the lead up to the Federal Reserve’s likely interest rate cut next week.
Most megacap and growth stocks edged higher in premarket trading, with Google-parent Alphabet up more than 1%.
A reading of producer prices and the weekly jobless claims report are both expected on Thursday at 8:30 a.m. ET.
Jobless claims have been in focus given the Fed’s scrutiny of the labor market’s health. Analysts have forecast a reading of 230,000, according to economists polled by Reuters.
Nvidia, which rallied 8.2% on Wednesday following a report the U.S. government is considering allowing the firm to export advanced chips to Saudi Arabia, looked set to extend its winning run and was up 1.1% before the bell.
At 05:21 a.m. ET, Dow E-minis were up 89 points, or 0.22%, S&P 500 E-minis were up 13.5 points, or 0.24%, and Nasdaq 100 E-minis were up 51.5 points, or 0.27%.
The tech-heavy Nasdaq closed more than 2% higher in the previous session. The S&P 500 closed 1% higher in volatile trading, which saw the benchmark index fall as much 1.5% intraday.
On Wednesday, a boost from the tech sector offset investor disappointment following an inflation report that dented hopes the Fed would cut interest rates by 50 basis points next week.
U.S. consumer prices rose slightly in August, but underlying inflation showed some stickiness. The core reading, which excludes volatile food and energy components, climbed 0.3% compared to an estimated 0.2% increase.
Traders now see an 87% chance of the Fed cutting interest rates by 25 basis points when it meets on Sept. 17-18, according to CME’s FedWatch Tool.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta)
