U.S. equity futures moved sharply lower in early Thursday trading amid a global government-bond-market selloff and slumping tech stocks as investors continue to navigate a backdrop of tariff uncertainty and softer economic growth.
Updated at 8:34 AM EST
Solid claims
Around 221,000 Americans filed for first-time jobless benefits last week, the Labor Department said, a smaller-than-expected tally that may not capture all of the current layoffs underway in the federal government.
The four-week average, however, was pegged at 224,250, a modest increase from the prior period, with continued claims also higher at 1.897 million, the highest in more than four years, suggesting jobseekers are finding it harder to secure a new position.
Updated at 8:25 AM EST
ECB rate move
The European Central Bank, as expected, lowered its benchmark deposit rate by 25 basis points following its two-day policy meeting in Frankfurt, and hinted at further moves over the coming months tied to the uncertain impacts of trade and tariff policies on the world's biggest economic bloc.
The ECB's sixth rate cut since last June takes is key rate to 2.5%. The Bank also lowered its 2025 growth forecast for the fourth consecutive time, pegging the advance at just 0.9%.
"The disinflation process is well on track," the ECB said in a statement. "Inflation has continued to develop broadly as staff expected, and the latest projections closely align with the previous inflation outlook."
"The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation stabilises sustainably at its 2% target over the medium term and to preserve the smooth functioning of monetary policy transmission," the statement added.
Updated at 7:42 AM EST
Macy's muted outlook
Macy's (M) shares were under pressure in early trading after the retailer echoed concerns of its larger rivals in citing tariff uncertainty and a pullback in consumer spending as part of its muted full-year profit profit forecast.
The group forecast overall sales of between $21 billion and $21.4 billion, missing Wall Street's $21.8 billion estimate, with annual profit pegged between $2.05 and $2.25 per share.
Macy's shares were marked 2.85% lower in premarket trading to indicate an opening bell price of $12.95.
Stock Market Today
Stocks ended higher on Wednesday, with the S&P 500 rallying 1.12% into the close of the session following President Donald Trump's move to carve out a month-long delay on new trade levies to the auto industry, put in place earlier this week. That pullback suggested the White House might be more willing to compromise with other sectors and countries over the coming months.
That optimism appeared to have faded overnight, however, amid the ongoing rise in European government-bond yields. That market move is tied to Germany's historic decision to rewrite its fiscal rules and commit trillions in spending to defense and infrastructure projects, as well as to renewed inflation risk in the U.S. tied to Trump's trade policies.
The Federal Reserve's Beige Book, which tracks economic activity around the various central bank regions, showed only "slight' growth but noted moderate price increases and notably increased mentions of tariffs.
A muted outlook from AI chipmaker Marvell Technologies has tech stocks trading deep in the red Thursday. Marvell
That report, alongside the extended selloff in German government bonds, lifted benchmark 10-year-note yields 5 basis points from Wednesday levels to trade at 4.309% heading into the start of the New York session. (Bond yields rise as bond prices decline.)
“Steep tariff increases against top US trading partners could create a ‘stagflationary’ shock — a negative economic hit combined with higher inflation — while triggering financial market volatility," said EY's chief economist, Gregory Daco.
Meanwhile, the U.S. dollar index, which tracks the greenback against a basket of its global peers, fell another 0.17% overnight to trade at 104.22, the lowest since November of last year.
On the stock side, a solid but unsurprising set of fiscal-fourth-quarter earnings from AI-chip maker Marvell Technology (MRVL) sent shares in the group down 16% in premarket trading, with high beta stocks such as Nvidia (NVDA) , Intel (INTC) and Broadcom (AVGO) following suit.
The moves have set up Wall Street for another opening-bell pullback, with futures contracts tied to the S&P 500 suggesting a 94-point decline and those linked to the Dow Jones Industrial Average priced for a 390-point retreat.
Tech stock declines have primed the Nasdaq for an opening-bell decline of around 267 points, a move that would extend the benchmark's year-to-date decline nearer to 4%.
Market-volatility gauges remain elevated, however, and big swings are expected over the session and into Friday's February jobs report, according to CBOE Group's VIX index.
Current VIX levels of $23.30 suggest daily moves of around 1.46%, or 85 points, for the S&P 500 over the next 30 days.
In overseas markets, European stocks turned lower heading into the European Central Bank's policy decision later this morning in Frankfurt. The ECB is expected to lower its key deposit rate by 25 basis points, to 2.5%, but further moves are likely to be complicated by trade-war risks and the impact of Germany's hefty fiscal spending increase.
Overnight in Asia, yesterday's tariff relief lifted stocks in the region, with the Nikkei 225 rising 0.77% on the session and the regional MSCI ex-Japan benchmark rising 1.23% into the close of trading.
