U.S. stock futures indicate that markets could open in negative territory on Thursday, with equities poised to pull back after the major averages ended the previous trading session mostly higher.
Investor sentiment may be pressured by the sharp rise in energy prices, as crude oil resumed its rally after closing Wednesday’s session only slightly higher.
The renewed climb in oil prices reflects growing concerns about potential supply disruptions as the conflict in the Middle East continues to expand.
Iran has reportedly targeted a U.S. oil tanker in the northern Persian Gulf, intensifying fears that the situation could escalate further after Tehran threatened to block shipping through the crucial Strait of Hormuz.
Meanwhile, U.S. Defense Secretary Pete Hegseth suggested the conflict could last longer than previously anticipated by the Trump administration, saying the war may continue for up to eight weeks, although it could also end sooner.
Despite the geopolitical tensions, overall market activity may remain relatively cautious as investors await the Labor Department’s closely watched monthly employment report, scheduled for release on Friday.
Economists currently expect the U.S. economy to have added about 60,000 jobs in February, following the creation of 130,000 positions in January. The unemployment rate is projected to rise slightly to 4.4% from 4.3%.
Ahead of the report, the Labor Department released new figures showing that initial jobless claims in the United States were unchanged in the week ending February 28.
U.S. stocks posted mostly gains during Wednesday’s trading session, partly recovering from Tuesday’s weakness. All three major indexes finished the day higher, with technology stocks leading the advance.
Although the benchmarks ended below their intraday peaks, they still recorded solid gains. The Nasdaq rose 290.79 points, or 1.3%, to close at 22,807.48. The S&P 500 gained 52.87 points, or 0.8%, to finish at 6,869.50, while the Dow Jones Industrial Average advanced 238.14 points, or 0.5%, to 48,739.41.
The rebound on Wall Street came as investors stepped in to buy stocks at lower valuations after Tuesday’s sell-off pushed the major averages to their lowest levels in three months.
Sentiment was also supported by encouraging economic indicators from the United States, including a report from payroll processor ADP showing that private-sector job growth in February exceeded expectations.
ADP reported that private employment increased by 63,000 jobs in February after rising by a downwardly revised 11,000 in January.
Economists had anticipated an increase of about 48,000 jobs, compared with the originally reported gain of 22,000 for the previous month.
Another report released by the Institute for Supply Management indicated that activity in the U.S. services sector unexpectedly accelerated in February.
The ISM said its services PMI rose to 56.1 in February from 53.8 in January, with a reading above 50 signaling expansion. Economists had expected the index to slip slightly to 53.6.
Following the unexpected rise, the services PMI reached its highest level since July 2022, when it stood at 56.5.
Initial buying interest had also been encouraged by a temporary decline in oil prices, although stocks maintained their strength even after crude prices moved higher again.
Telecommunications stocks posted notable gains during the session, lifting the NYSE Arca North American Telecom Index by 2.2%.
Networking companies also recorded strong performance, as the NYSE Arca Networking Index climbed 2.2%.
Shares in the semiconductor, biotechnology and computer hardware sectors also advanced, contributing to the strong showing of the tech-heavy Nasdaq.
