As the dawn of 2025 breaks, US equity futures are showcasing a promising start on Thursday. This positive atmosphere is primarily driven by the anticipation surrounding upcoming data releases, particularly regarding jobless claims and manufacturing activity. The futures for the Dow Jones Industrial Average have elevated by 0.7%, signaling robust investor sentiment.
Meanwhile, S&P 500 futures have seen a boost of 0.8%, and the Nasdaq futures have surged 1%, reflecting a growing optimism in the market. In tandem with this optimistic outlook on equities, oil prices are also on the rise. The front-month global benchmark, North Sea Brent crude, has increased by 1.3%, now priced at $75.61 per barrel.
Similarly, US West Texas Intermediate crude has experienced a climb of 1.4%, now sitting at $72.67 per barrel. These increases in oil prices can significantly impact the broader economy, particularly given the interconnectedness between energy prices and consumer spending. On the labor front, new unemployment claims data are set to be released at 8:30 am ET.
Analysts forecast an increase in claims to 222,000 for the week ending December 28, up from the previous week's 219,000. This slight uptick in claims could indicate underlying challenges in the labor market, which will be closely monitored by investors and policymakers alike. Additionally, the December Purchasing Managers' Manufacturing Index (PMI), scheduled for release at 9:45 am ET, is expected to remain stable at 48.3, the same as reflected in the flash report.
A PMI below 50 signifies contraction in the manufacturing sector, which remains a critical component of the US economy. Later in the morning, construction spending data is anticipated at 10 am ET, with expectations pointing towards a modest increase of 0.3% in November, following an uptick of 0.4% the previous month.
This gradual rise in construction spending is crucial as it reflects ongoing investments in infrastructure and development, which can bolster economic growth. As the markets open, all eyes will be on these data points, as they could have significant implications for trading strategies and economic forecasts going forward..