(RTTNews) - After ending yesterday's choppy trading session modestly higher, stocks may move back to the downside in early trading on Thursday. The major index futures are currently pointing to a slightly lower open for the markets, with the S&P 500 futures down by 0.1 percent.
A rebound by the price of crude oil may weigh on Wall Street amid concerns about a re-escalation of the conflict between the U.S. and Iran.
U.S. crude oil futures are surging by more than 2 percent on the day after plunging by more than 8 percent over the two previous sessions.
The sharp increase by the price of crude oil comes after reports the U.S. launched another round of "self-defense strikes" in southern Iran, leading Tehran to retaliate by purportedly targeting a U.S. air base.
"Investors are still broadly positioned for a de-escalation scenario in the Middle East, but recent headlines are a reminder that the path toward any agreement remains fragile," said Daniela Hathorn, Senior Market Analyst at Capital.com.
The futures regained ground following the release of a report from the Commerce Department showing consumer prices in the U.S. increased by slightly less than expected in the month of April.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.4 percent in April after climbing by 0.7 percent in March. Economists had expected prices to increase by 0.5 percent.
The report also said the annual rate of growth by the PCE price index accelerated to 3.8 percent in April from 3.5 percent in March, in line with estimates.
Excluding food and energy prices, the core PCE price index crept up by 0.2 percent in April after rising by 0.3 percent in March. Core prices were expected to rise by another 0.3 percent.
The annual rate of growth by the core PCE price index ticked up to 3.3 percent in April from 3.2 percent, matching expectations.
A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits rose by slightly more than expected in the week ended May 23rd.
Stocks turned in a relatively lackluster performance during trading on Wednesday but managed to end the day modestly higher. The Dow led the way higher, reaching a new record closing high along with the Nasdaq and S&P 500.
The major averages all ended the day in positive territory. The Dow climbed 182.60 points or 0.4 percent to 60,644.28, the Nasdaq inched up 18.55 points or 0.1 percent to 26,674.73 and the S&P 500 crept up 1.24 points or less than a tenth of a percent to 7,520.36.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan's Nikkei 225 Index fell by 0.5 percent, while Hong Kong's Hang Seng Index slumped by 1.3 percent.
The major European markets have also moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 1 percent, the French CAC 40 Index and the German DAX Index are both down by 0.6 percent.
In commodities trading, crude oil futures are surging $2.06 to $90.74 a barrel after plummeting $5.21 to $88.68 a barrel on Wednesday. Meanwhile, after slumping $53.50 to $4,481.50 an ounce in the previous session, gold futures are sliding $49.30 to $4,432.10 an ounce.
On the currency front, the U.S. dollar is trading at 159.33 yen versus the 159.51 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1633 compared to yesterday's $1.1624.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
