Market Update: US Futures rally ahead of jobs data; Bank of England hikes rate

US initial jobless claims data comes on Thursday while Cleveland Fed President Loretta Mester is speaking on Thursday.

Market Update: US Futures rally ahead of jobs data; Bank of England hikes rate
The oil price has bounced back from the lowest level seen almost six months back.

On the back of yesterday’s momentum when the leading US stock market jumped over 1.25%, the US futures are trading in the green on Thursday morning. The much anticipated US employment report for July comes on Friday. It gives important insights into the number of American citizens seeking unemployment benefits. Meanwhile, the Bank of England has decided to raise the key interest rate by 0.5% from 1.25% to 1.75% to tame runaway inflation.

Volatility in bonds subsided after signals from Federal Reserve officials that the central bank would keep raising rates to reduce inflation. The yield on 10-year Treasury notes slipped to 2.727% from 2.747% Wednesday. Lucid Group shares and the stock of Clorox are in focus in the pre-market session.

On Wednesday, US equities closed higher with Dow clocking a gain of 1.28%, S&P 500 1.56%, Nasdaq 2.59%, and Russell 2000 gained 1.41%.

Also Read: Bank of England to go for biggest rate hike since 1995 to levels not seen since 2008

Nasdaq ended the session at its highest level since May 4 while S&P 500 touched a level not seen since June 2. Big tech, retail, apparel and accessories, autos, semis, growth software, Chinese Internet, credit cards, airlines, biotech, and drug stores were the top performing sectors.

The oil price has bounced back from the low level seen almost six months back. Alibaba results have been announced and after a relatively slow April and May, the company saw signs of recovery across businesses in June. Revenue remained stable year-over-year primarily due to a decline in China’s commerce segment revenue by 1% year-over-year. Income from operations saw a decrease of 19% year-over-year.

Also Read: Will Alibaba stock recover in 2022 after falling 50% in one year? Results and guidance hold the key

Investors will get another batch of earnings on Thursday from Eli Lilly, Kellogg, and ConocoPhillips which are among those scheduled to report quarterly results before the opening bell.

US initial jobless claims data comes on Thursday while Cleveland Fed President Loretta Mester is speaking on Thursday.

While the market looks to rally ahead, there are strategists cautioning about another leg down in the market decline.

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