U.S. stock index futures pointed to a sharply higher open Thursday, with the Dow briefly indicating gains of more than 200 points following a solid GDP report and after the stellar close seen on Wednesday.
Dow futures dipped to trade about 120 to 150 points higher before the second estimate of second-quarter GDP came in at 3.7 percent, topping the first read of an annualized 2.3 percent.
Weekly jobless claims came in slightly lower than expected at 271,000, marking the
Bond yields rose, with the 10-year at 2.2 percent and the 2-year at 0.7 percent. The U.S. dollar traded higher against major world currencies, with the euro weaker near $1.12 and the yen also weaker near 120.5 yen against the greenback.
"The combination of stronger economic data from both the U.S. and Europe and more stable China and EM, combined with a somewhat more dovish Fed postponing rate hikes is definitely good news for both the U.S. and Europe," said Ilya Feygin, senior strategist at WallachBeth Capital.
"The U.S. market has already partially reacted yesterday and will open about 0.8 percent higher this morning," he said. It faces overhead resistance less than 1 percent above here and buying on the elevated opening gap has not been a good tactical buy point in this more volatile market with lower liquidity."
Investors will also eye a key meeting of central bankers at Jackson Hole, Wyoming. The annual Economic Policy Symposium starts on Thursday and brings together academics, financial market participants and many of the world's leading central bankers.