Stock futures rose slightly on Thursday evening as Wall Street tried to build on a strong closing price in afternoon trading.
Futures contracts linked to the Dow Jones Industrial Average rose 34 points, or 0.1%. Those for the S&P 500 and Nasdaq 100 rose 0.2% and 0.3%, respectively.
The movement in futures comes after stocks rallied in afternoon trading on Thursday and the Dow fluctuated more than 500 points as cyclical trades gained traction. The strong closing price broke the recent trend of poor results on Wall Street and reduced the market’s losses for weeks. The Dow and S&P 500 are down less than 0.1% for the week, while the Nasdaq Composite is down 1.8%.
“If you are positioned as we are, which means a cyclical rebound and an overweight position in value sectors, you certainly can’t do a winning lap here. But it’s nice to see some after the last six days,” Jason Trennert, CEO of Strategas Research Partners said on CNBC’s “Closing Bell”.
Futures were boosted by bank stocks, which rose after the Fed announced that banks could resume buybacks and raise dividends from late June. The central bank originally announced that it would lift restrictions on the pandemic in the first quarter, but even the belated move gives investors more clarity.
“The banking system remains a source of strength and the return to normal after this year’s stress test will maintain that strength,” Randal Quarles vice chairman of supervision said in a statement.
JPMorgan and Citigroup shares rose slightly in expanded trading alongside other major banks.
In terms of economic data, investors will take another look at the inflation opportunities on Friday. Personal income and consumer spending reports are due in February.