US pre-open: Stocks to fall after Wednesday's Powell-inspired rally
US stocks looked set for a slightly weaker open on Thursday, having surged a day earlier after Federal Reserve chair Jerome Powell suggested a slowdown in the pace of rate hikes.
At 1040 GMT, Dow Jones Industrial Average and Nasdaq futures were down 0.2%, while S&P 500 futures were 0.1% lower.
James Hughes, market analyst at Scope Markets, said: "Wall Street lurched higher in the latter part of yesterday’s session off the back of hints from Jerome Powell that the Federal Reserve may be poised to let its foot off the monetary policy accelerator a little, starting as soon as this month.
"It seems a long way short of a pivot, but markets embraced the news, with the Dow adding more than 2% and the S&P tacking on in excess of 3% as a result. That significant shortfall in the ADP Payroll reading was brushed aside, but it does raise questions as to just how bruising Friday’s non-farm payrolls and accompanying wage growth data may look.
"The slightly lower start shown by futures right now looks like little more than some opportunistic profits taking but if key economic releases in the coming days disappoint, this cheer in the markets could yet prove short lived.
"Ahead of the open we’re calling the Dow down 70 at 34,520 and the S&P down 5 at 4,075."
On the data front, personal income and spending data is due at 1330 GMT, along with initial jobless claims. The S&P Global manufacturing PMI for November is due at 1445 GMT, while the ISM manufacturing PMI and construction spending figures are at 1500 GMT.