US equity futures climbed in anticipation of Thursday's opening bell, rebounding after a previous day's selloff. This movement follows a shift in the Federal Reserve's stance towards a more cautious approach regarding interest rate cuts scheduled for 2025. Futures for the Dow Jones Industrial Average increased by 0.7%, S&P 500 futures rose by 0.8%, and Nasdaq futures were up 0.7%. In its recent meeting, the Federal Open Market Committee reduced its benchmark lending rate by 25 basis points but indicated that the number of future cuts will be fewer than projected in September. Oil prices exhibited mixed behavior, with the front-month global benchmark North Sea Brent crude rising 0.2% to $73.56 per barrel, while US West Texas Intermediate crude saw a decline of 0.4% to $70.25 per barrel. The Q3 gross domestic product growth was upwardly adjusted to 3.1% from a previous 2.8%, contrasting with forecasts by Bloomberg, which anticipated no revision and a steady rate of 2.8%. New unemployment claims also dropped to 220,000 for the week ending December 14, down from 242,000 the prior week.
This was against predictions of a decrease to 230,000. The Philadelphia Fed manufacturing index reported a negative 16.4 for December, compared to a negative 5.5 in November, falling short of estimates which predicted a rise to 2.8. On the housing front, existing home sales due at 10 am ET are anticipated to rise to an annual rate of 4.09 million in November, a growth from 3.96 million previously.
Analysts also predict a 0.1% decline in the leading economic indicators index for November, following a 0.4% drop in October. Regarding global markets, Japan’s Nikkei index closed 0.7% lower, Hong Kong’s Hang Seng saw a decline of 0.6%, and China’s Shanghai Composite finished down 0.4%. Across Europe, the UK's FTSE 100 fell by 1.2%, while Germany's DAX index was down 0.9% during the early afternoon sessions. In stock movements, shares of Lamb Weston Holdings ($LW) experienced a significant drop of 18% in pre-market trading after the company announced lower adjusted earnings and revenue for fiscal Q2 alongside a downgraded outlook for fiscal 2025.
Conagra Brands ($CAG) also saw a 1.2% decrease following disappointing fiscal Q2 results. Conversely, Tripadvisor ($TRIP) shares surged by 10% after it was reported that the company is acquiring Liberty TripAdvisor in a deal valued at $435 million. Additionally, Mesoblast ($MESO) shares soared nearly 40% after the US Food and Drug Administration approved its Ryoncil therapy for treating steroid-refractory acute graft versus host disease in young children and teenagers..