US stock futures steady after positive labor data sparks Wall St rebound

Investing.com– U.S. stock index futures steadied in evening deals on Thursday following a positive session on Wall Street as data showing a bigger-than-expected drop in jobless claims soothed some fears of a recession. 

Wall Street indexes rebounded sharply on Thursday, recouping a measure of steep losses this week amid some positive earnings and sustained bets on interest rate cuts. But U.S. stock benchmarks were still headed for a dismal weekly performance, following a deep rout on Monday. 

fell 0.1% to 5,344.75 points, while steadied at 18,538.0 points by 20:27 ET (00:27 GMT). fell 0.1% to 39,563.0 points. 

Wall St recovers, but still set for weekly decline 

Wall Street indexes logged sharp gains on Thursday, as data showed dropped to 233,000 in the past week, more than expectations for a reading of 241,000.  

But U.S. markets were still headed for weekly losses after heightened fears of a recession sparked deep declines earlier this week.

Unexpectedly hawkish messaging from the Bank of Japan also rattled markets, as did heavy profit-taking in the tech sector. 

This saw the Nasdaq enter correction territory from recent highs. 

The rose 2.3% to 5,319.31 points, while the surged 2.9% to 16,659.0 points on Thursday. The rose 1.8% to 39,446.49 points.

But all three indexes were down between 0.7% and 3% this week, with the S&P and the Nasdaq headed for a fourth week in red. 

CPI data on tap after volatile week 

Wall Street has few major cues to trade on in the remainder of the week, with focus now turning to key inflation data due next week.

The reading comes amid increased conviction that U.S. inflation is easing and will give the Federal Reserve enough confidence to begin cutting interest rates from September.

Recent fears of a recession saw traders bet that the Fed will cut rates by an outsized 50 basis points next month, compared to earlier expectations for a 25 basis point cut, showed. 

Expedia rises on positive earnings, Array sinks 

Among major aftermarket movers, Expedia Inc (NASDAQ:) surged 10% after clocking better-than-expected quarterly earnings, as bookings were boosted by resilient travel demand. 

On the other hand, Array Technologies Inc (NASDAQ:) slid 12.7% after the solar energy technology maker lowered its annual guidance.