Wall Street Looks Headed For Positive Start

(RTTNews) - Higher futures point to a positive start for U.S. stocks Thursday morning. The market is likely to benefit from Fed Chair Jerome Powell's comments that the next rate move from the central bank will most likely be an interest rate reduction.

The Dow futures are gaining 0.4 percent. The S&P futures are up 0.63 percent, and the Nasdaq futures are stronger by 0.84 percent.

In earnings news, Moderna, Inc. reported first-quarter earnings of $1.2 billion, compared to $79 million a year ago. Earnings per share in the latest quarter was $3.07, up sharply from $0.19 in the year-ago quarter.

Apple Inc. is set to report its earnings after trading hours today. Amgen and Conbase are also scheduled to announce their quarterly earnings later in the day.

On the economic front, data on initial jobless claims, labor productivity, and trade balance, are due at 8:30 AM ET. Data on factory orders for the month of March is due at 10 AM ET.

U.S. stocks ended lower on Wednesday after seeing some wild swings during the later part of the day's session following the Federal Reserve's monetary policy announcement. The major averages initially surged in reaction to the Fed announcement but pulled back going into the close.

While the Dow rose 87.37 points or 0.2 percent to 37,903.29, the Nasdaq fell 52.34 points or 0.3 percent to 15,605.48 and the S&P 500 dipped 17.30 points or 0.3 percent to 5,018.39.

The Federal Reserve announced its decision to leave interest rates unchanged, citing a lack of further progress toward its 2 percent inflation objective in recent months.

Members of the Fed also reiterated they need "greater confidence" inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

Asian stocks ended mixed on Thursday after mixed signals from Fed Chief Jerome Powell on the outlook for inflation and interest rates.

After leaving interest rates steady on Wednesday, the Fed signaled that it is still leaning toward eventual reductions in borrowing costs, but needs more evidence that prices are cooling before cutting interest rates.

Mainland Chinese markets remained closed for the Labour Day holidays. Hong Kong's Hang Seng index jumped 2.50 percent to 18,207.13 as traders returned to their desks after a holiday.

European stocks are turning in a mixed performance on Fed's signal that it is poised to keep interest rates higher for longer. Sentiment was also dented after a survey showed the ongoing downturn in euro zone manufacturing activity deepened in April.

In commodities, West Texas Intermediate Crude oil futures are up $0.52 or 0.66 percent, at $79.52 a barrel. Gold futures are down slightly at $2,310.40 an ounce.