Stock futures rose slightly on Thursday evening as Wall Street tried to close the afternoon trading sharply.
Futures contracts linked to the Dow Jones Industrial Average rose about 34 points, or 0.1%. The S&P 500 and Nasdaq 100 added 0.2% and 0.3%, respectively.
The futures move comes after stocks bounced back on Thursday afternoon trading, with the Dow hovering more than 500 points as cyclical trades gained strength. The strong close broke a recent trend of low-end stocks on Wall Street and reduced weekly market losses. The Dow and S&P 500 are now down less than 0.1% during the week, while the Nasdaq Composite is down 1.8% in the red.
“If you are positioned as we are, that is, for a cyclical recovery and overweight in the value sectors, surely you can not make a victory here. But it is good to see, after the last six days, that some of the trends that have been in place for most of the six months seem to be reaffirmed, “Jason Trennert, CEO of Strategas Research Partners, told CNBC’s” Closing Bell. “
Futures were boosted by bank stocks, which rose after the Fed announced that banks could resume amortization and raise dividends from the end of June. The central bank originally said it would lift restrictions on the pandemic era in the first quarter, but even the delayed move gives more clarity to investors.
“The banking system remains a source of strength and a return to our normal framework after this year’s stress test will preserve that strength,” Supervising Vice President Randal Quarles said in a statement.
Shares of JPMorgan and Citigroup rose slightly in extended trading, along with other major banks.
In terms of economic data, investors will once again see the possibilities for inflation on Friday, with pending reports of personal income and consumption spending in February.