Stock-index futures edged higher Thursday, indicating a respite in selling blamed on continued U.S.-China trade tensions and worries about global economic growth, as investors awaited an updated look at first-quarter gross domestic product data.
Futures on the Dow Jones Industrial Average YMM19, +0.18% rose 35 points, or 0.1%, to 25,144, while S&P 500 futures ESM19, +0.28% gained 6.65 points, or 0.2%, to 2,786.75. Nasdaq-100 futures NQM19, +0.30% were up 16 points, or 0.2%, at 7,232.
What’s driving the market?
Stocks fell Wednesday as investors continued to flock to haven assets, including U.S. Treasurys. The Dow DJIA, -0.87% fell 221.36 points, or 0.9%, to end at 25,126.41, while the S&P 500 SPX, -0.69% shed 19.37 points, or 0.7%, to 2,783.02. The Nasdaq Composite COMP, -0.79% gave up 60.04 points to 7,547.31, a drop of 0.8%.
The bounce for futures comes despite no signs of progress on the U.S.-China trade front. Speaking to reporters in Beijing, Chinese Vice Foreign Minister Zhang Hanhui said Beijing opposes a trade war, but is “not afraid of a trade war,” according to news reports. “This kind of deliberately provoking trade disputes is naked economic terrorism, economic chauvinism, economic bullying,” Zhang said.
A rally in government bonds that took the yield on the 10-year Treasury note TMUBMUSD10Y, +0.04% to its lowest level since September 2017 and deepened the inversion of the yield curve, with the rate on the 10-year note sinking further below the yield on the 3-month T-bill TMUBMUSD03M, +0.00% was blamed for stoking recession fears. Yields move in the opposite direction of bond prices.
Treasury prices retreated modestly early Thursday, with yields edging back up. The yield on the 10-year note was