Stock futures rose slightly on Thursday as investors awaited fresh inflation data and watched the U.S. election results.
Futures contracts linked to the Dow Jones Industrial Average rose 28 points, or 0.1%. S&P 500 futures added 0.1%, while Nasdaq 100 futures gained 0.2%.
A day of losses followed with the Dow Jones losing 646.89 points, or 1.95%. The Nasdaq Composite and S&P 500 lost nearly 2.5% and about 2.1%, respectively.
The declines came amid uncertainty in the U.S. midterm election vote. The market had hoped Republicans would take control of the House of Representatives and the Senate on Tuesday – a situation that would create a stalemate in Washington, D.C. Instead, the main Senate races in Arizona, Georgia and Nevada remain close disputed. Indeed, the Senate race between Raphael Warnock, the incumbent Democrat, and Herschel Walker will head to a runoff in December.
The pain in stocks deepened on Wednesday night after crypto exchange Binance said it was scrapping plans to acquire rival FTX. This sent the tech sector plummeting and drove the price of bitcoin to levels not last seen in 2020.
Lack of clarity around the election, as well as uncertainty around October’s consumer price index data and corporate earnings reports drove the selloff, Chris Zaccarelli said. , chief investment officer at the Independent Advisor Alliance.
“Those three things lead to uncertainty,” he said. “And, as everyone knows, markets really don’t like uncertainty.”
The October CPI report, due Thursday at 8:30 a.m. ET, is the next focal point for investors. Economists polled by Dow Jones expect the headline CPI to have risen 0.6% in October from September, or 7.9% a year ago. It’s a key report for the Federal Reserve, which will meet again in mid-December.
The weekly jobless claims must also be published Thursday morning.