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Stock index futures drifted lower Thursday with some labor market data ahead.
S&P futures (SPX) -0.1%, Nasdaq 100 futures (NDX:IND) -0.1% and Dow futures (INDU) -0.1% were off slightly.
“Markets put in a solid performance over the last 24 hours, with the S&P 500 reaching an all-time high and closing just shy of the 5,000 mark at 4995.06,” Deutsche Bank’s Jim Reid said. “Indeed, at the intraday peak it had been even closer than that, with an intraday high of 4999.89.”
But “despite the decent performance in markets, yesterday also saw continued concerns about regional banks and commercial real estate, which means futures are still pricing a 21% chance that the Fed will cut rates next month,” Reid added. “So even as several Fed officials have said they want to see more evidence on the inflation side, it’s clear that markets are still pricing in a risk that they may end up needing to move quicker than that.
Rates edged higher, despite Wednesday strong demand for the record $42B 10-year note auction. The 10-year yield (US10Y) rose 2 basis points to 4.12%. The 2-year yield (US2Y) rose 1 basis point to 4.44%.
There will be a $25B auction of 30-year (US30Y) bonds this afternoon.
Before the bell, weekly initial jobless claims figures arrive. The forecast is for a dip to 221K.
“We are … starting to see some early signs that rising layoffs will become a more important part of the payroll picture in the spring,” Pantheon Macro’s Ian Shepherdson said.
Some “of the key leading indicators for claims suggest a meaningful uptrend is imminent.”
