FX.co ★ U.S. Stocks May Continue To Experience Choppy Trading

Following a couple of sessions characterized by an uncertain and inconsistent performance, stocks may be heading towards a similarly turbulent trading session early on Thursday. The major index futures seemingly suggest the markets will open on a steady note, with predictions of the S&P 500 futures falling by less than a tenth of a percent.

Contrary to previous suggestions of a slightly lower opening, the futures picked up steam following the release of a Labor Department report. The report indicated a substantial increase in first-time claims for U.S. unemployment benefits in the week ending May 4th.

According to the report, initial jobless claims rose to 231,000, a surge of 22,000 from the revised level of 209,000 the week before. Economists had anticipated a minor increase leading to 210,000 claims from the 208,000 reported the previous week.

This considerable increase propelled jobless claims to their highest level since peaking at 234,000 in the week ending August 26th. This data could enforce the recently reignited belief that the Federal Reserve will implement cuts to interest rates in the coming months.

However, there could be a degree of restraint in trading activity, as traders exhibit trepidation regarding the short-term market outlook. On Wednesday, the markets showed no clear direction, continuing Tuesday's lackluster performance. Despite this, the Dow Jones managed to end the day higher for the sixth consecutive day, attaining its highest closing level in over a month.

The significant indexes ended the day mixed. While the Dow Jones rose 172.13 points or 0.4 percent to 39,056.39, the S&P 500 barely moved, falling by 0.03 points or less than a tenth of a percent to 5,187.67. Meanwhile, the Nasdaq fell marginally by 29.80 points or 0.2 percent to 16,302.76.

Internationally, Asian-Pacific region stock markets delivered a mixed performance on Thursday, with Japan's Nikkei 225 Index falling by 0.3 percent and Hong Kong's Hang Seng Index soaring by 1.2 percent.

In contrast, the main European markets have all noted gains, with the German DAX Index rising by 0.8 percent and both the U.K.'s FTSE 100 Index and the French CAC 40 Index increasing by 0.3 percent.

In commodity trades, crude oil futures are appreciating by $0.53 to $79.52 a barrel after a $0.61 increase to $78.99 a barrel on Wednesday. Gold futures, after a slight decrease of $1.90 to $2,322.30 per ounce in the previous session, are creeping up $3 to $2,325.30 an ounce.

In currency trading, the U.S. dollar stands at 155.64 yen versus the previous close of 155.53 yen in New York trading on Wednesday. Against the euro, the dollar currently values at $1.0753, compared to $1.0748 on the previous day.