Futures rise after stocks retreat, Micron's upbeat outlook - what's moving markets
Investing.com -- U.S. stock markets slump as a December rally pauses, while Treasury yields dip as traders stick to bets that the Federal Reserve will roll out interest rate cuts early next year. Elsewhere, Micron (NASDAQ:MU) delivers a stronger-than-anticipated current-quarter revenue outlook, fueling a premarket jump in shares in the closely-watched memory chipmaker.
1. Futures higher after stocks slip
U.S. stock futures were higher on Thursday, pointing to a rebound in equities following a day of losses on Wall Street in the previous session.
By 04:57 ET (09:57 GMT), the Dow futures contract had added 192 points or 0.5%, S&P 500 futures had risen by 27 points or 0.6%, and Nasdaq 100 futures had gained 124 points or 0.7%.
The main averages retreated in an afternoon sell-off on Wednesday, with the tech-heavy Nasdaq Composite snapping a nine-day winning streak and the benchmark S&P 500 slipping to its biggest one-day fall in three months. Analysts said a recent rally in stocks, which had been charged by investor hopes for Federal Reserve interest rate reductions early next year, hit resistance levels.
«This could be due to an overbought market as rate cuts optimism ran out of steam,» said Tina Teng, market analysts at CMC Markets, in a note.
Adding to the downbeat sentiment was a disappointing annual forecast from logistics group FedEx (NYSE:FDX). Shares in the parcel deliverer, which is often seen as a bellwether for the state of the U.S. economy, slumped by more than 12%.
2. U.S. Treasury yields fall
The nose-dive on Wall Street came despite a drop in U.S. Treasury yields, which touched five-month lows on Wednesday on enthusiasm for Fed rate cuts.
Bets that the Fed will move to slash rates from over two-decade highs
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