US futures point to flat open as tax reform news takes center stage

  • President Donald Trump said that the U.S. recognized Jerusalem as the capital of Israel — an announcement which received backlash from nations around the world
  • Bitcoin broke above the $14,000 mark, less than 24 hours after the cryptocurrency passed $12,000

U.S. stock index futures pointed to flat open on Thursday, as investors await more developments concerning an overhaul of the U.S. tax system.

Dow Jones industrial average futures fell 38 points, while S&P 500 and Nasdaq 100 futures gained 0.25 points and 19 points, respectively.

In the previous session, U.S. equities finished relatively mixed, with the Nasdaq lifted by an uptick in technology stocks. The rest of the U.S. market closed slightly lower as investors awaited more details as to what the final tax reform would look like from Congress.

Trader Peter Tuchman works on the floor of the New York Stock Exchange, (NYSE) as the Dow Jones Industrial Average crosses 24,000, in New York, U.S., November 30, 2017.
Brendan McDermid | Reuters
Trader Peter Tuchman works on the floor of the New York Stock Exchange, (NYSE) as the Dow Jones Industrial Average crosses 24,000, in New York, U.S., November 30, 2017.

Consequently, the muted trading performance on Wall Street somewhat influenced stocks in Asia and in Europe on Thursday.

Dell Technologies, Dollar General, Vail Resorts, American Outdoor Brands and Cloudera are just some of the names set to publish their latest earnings Thursday.

Elsewhere, jobless claims are expected to come out at 8:30 a.m. ET, followed by Quarterly Services Survey data at 10 a.m. ET. Consumer credit is expected to be released later on in the day, at 3 p.m. ET.

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In politics, President Donald Trump announced Wednesday that the U.S. recognized Jerusalem as the capital of Israel and that the American embassy would be moved there, even though officials recently said the relocation could take "years".

The announcement was met with condemnation worldwide, from Arabs and Muslims in the Middle East, to the United Nations and European Union; with the latter two institutions both voicing fears about what ramifications the decision would have on the peace-making process between Israel and Palestine.

The overhaul in the U.S. tax system continues to sway market sentiment. The U.S. Senate voted to go to a conference committee with the House on Wednesday, in order to negotiate a plan when it comes to reforming the current system. The Senate voted 51-47 in favor, with Republicans hoping to secure an agreement on a tax proposal by Christmas.

William Dudley, president of the Federal Reserve Bank of New York, is expected to attend the "Higher Education Financing and Costs and Returns of Higher Education" event in New York.

Elsewhere, Bitcoin broke above the $14,000 mark, less than 24 hours after the cryptocurrency passed the $12,000 milestone.