U.S. stock index futures pointed to a higher start on Thursday, with markets appearing poised to build on recent gains following the release of encouraging economic data.
Early momentum was supported by a report from the Labor Department showing that initial jobless claims fell unexpectedly in the week ending June 21. Claims dropped by 10,000 to 236,000, surprising economists who had expected the figure to hold steady at 245,000.
Meanwhile, a separate report from the Commerce Department showed durable goods orders surged 16.4% in May, far outpacing expectations for an 8.5% increase. This follows a downwardly revised 6.6% decline in April. Even when excluding the volatile transportation sector, orders still rose by 0.5%, indicating broad-based strength in manufacturing demand.
However, there was also a note of caution as revised GDP figures revealed the U.S. economy contracted more than previously thought in the first quarter of 2025. Real GDP fell by 0.5%, a steeper drop than the initially reported 0.2% decline. The revision was mainly due to weaker consumer spending and exports, though this was partially offset by lower imports.
On Wednesday, stocks had started strong, building on gains from earlier in the week, but the rally faded by the close. The Nasdaq managed to notch a new four-month high, ending up 0.3% at 19,973.55. The S&P 500 closed flat at 6,092.16, while the Dow Jones Industrial Average fell 0.3% to 42,982.43.
The early strength in the markets was attributed to ongoing positive sentiment, though traders later shifted focus to geopolitical developments following reports of a ceasefire agreement between Israel and Iran, prompting some profit-taking after recent highs.
In housing news, the Commerce Department reported a sharp drop in new home sales for May, which fell 13.7% to an annual rate of 623,000. This followed a 9.6% jump in April and came in below expectations for a 7.1% decline.
Real estate-related stocks took a hit following the housing data. The Dow Jones U.S. Real Estate Index fell 2.4%, while the Philadelphia Housing Sector Index dropped 1.9%. Weakness also emerged in oil service, airline, and natural gas stocks. On the other hand, networking stocks provided a boost to the Nasdaq, helping the tech-heavy index outperform the broader market.
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