U.S. stock futures were little changed Thursday following an afternoon rebound rally in the prior trading session that helped all three major averages log gains of well above 1%.
Futures on the S&P 500 and Nasdaq each slipped by about 0.1%, while futures tied to the Dow Jones Industrial Average were just below breakeven.
On Wednesday, the S&P 500 surged 1.8%, the Dow Jones Industrial Average about 1.4%, and the Nasdaq Composite 2.1% – snapping a seven-day streak of declines and notching its biggest jump in four weeks.
All eyes will be on Federal Reserve Chair Powell Thursday morning when he speaks at the Cato Institute’s 40th Annual Monetary Conference in Washington D.C. around 9:10 a.m. The appearance will mark Powell’s final public remarks before the U.S. central bank’s next policy announcement September 21.
Across the Atlantic, the European Central Bank is expected to deliver a 50-75 basis point interest rate hike after inflation in the eurozone hit a new record high.
The increase will come just two weeks before the Federal Reserve is poised to raise interest rates in the U.S. by 0.75% for the third consecutive time. Some market participants had hoped that policymakers would slow the pace of their rate-hiking campaign this fall, but strong economic data on the labor and manufacturing fronts have tempered those expectations.
CME Group’s Fedwatch tool reflects expectations for a bump of three quarters of a percentage at about 76%, up from 69% one week ago.
Goldman Sachs has also raised its rate estimates to a 75-basis-point hike in September from its previous expectation of a 0.50% increase, per a note from economists led by Jan Hatzius.
Shares of GameStop (GME) were up nearly 9% ahead of the open after the meme-stock darling announced a partnership with crypto platform FTX late Wednesday. The video-game retailer also reported second-quarter earnings that showed losses widened to $108.7 million while sales declined 4% from a year ago to $1.14 billion.
American Eagle Outfitters (AEO) shares tanked more than 15% in the early trade after the company missed on earnings, paused its quarterly dividend, and warned “demand trends remain difficult” in the current quarter.
In commodity markets, oil prices nudged slightly higher after settling at a fresh seven-month low. On Wednesday, West Texas Intermediate crude oil tumbled 5.7% to settle at $82.32 per barrel, the lowest level since Jan. 13., and brent futures dropped 5.4% to settle at $87.62 per barrel.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc