U.S. stock futures swung on Thursday after two days of decline on Wednesday. Futures of major benchmark indices were trading mixed in premarket.

After a marathon 22-hour hearing, the House Rules Committee moved President Donald Trump‘s “$4.9 trillion legislative package” forward with an 8-4 vote on the “One Big Beautiful Bill Act.”

This action paves the way for a potential overnight floor vote, as Republicans press ahead despite internal party disagreements.

Meanwhile, the 10-year Treasury bond yielded 4.57% and the two-year bond was at 3.99%. The CME Group's FedWatch tool‘s projections show markets pricing a 94.7% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.

Cues From Last Session:

Most S&P 500 sectors closed lower Wednesday, with real estate, healthcare, and financial stocks seeing the largest declines.

However, communication services bucked the trend, finishing higher. Investors remained cautious amid fresh worries about fiscal policy.

Meanwhile, Lowe's Companies Inc. (NYSE:LOW) reported mixed first-quarter fiscal 2025 results, and Target Corp. (NYSE:TGT) posted weaker-than-expected first-quarter figures.

On the economic front, U.S. mortgage application volumes fell 5.1% from the prior week for the period ending May 16.

The Dow Jones index declined 817 points or 1.91% to 41,860.44, whereas the S&P 500 index fell 1.61% to 5,844.61. Nasdaq Composite ended 1.41% lower at 18,872.64, and the small-cap gauge, Russell 2000, dropped 2.80% to 2,046.56.

Insights From Analysts:

The Senior Global Market Strategist at Wells Fargo, Scott Wren, said that “We do not see the U.S. economy dipping into a recession this year as consumer spending should continue to grow modestly with growth in real incomes.”

Wren anticipates a modest rebound in GDP next year, rising to 1.8% from their projected 1% for this year, following a continued growth slowdown over the next couple of quarters.

Wells Fargo doesn’t foresee a U.S. recession this year because consumer spending should continue its modest growth, bolstered by increasing real incomes, even if it’s weaker than late last year.

While unemployment is expected to tick up due to below-average economic growth, Wells Fargo’s 5.3% projection for 2026 remains well below recessionary levels.

Furthermore, he added that “We also still see plenty of up and down in equity prices but ultimately a higher S&P 500 Index by the end of 2026.”

Meanwhile, Kristian Kerr, head of macro strategy at LPL Financial, said that “Greater clarity is expected later this summer, as economic data tends to lag, meaning the full impact of tariffs may not be evident until June or July at the earliest.”

Additionally, he explained that the current policy landscape remains in flux, with broader tariffs largely paused until early July and China exempt from significant tariff increases until August 12.

“If meaningful economic weakness does materialize — confirmed by hard data mirroring the softness seen in leading indicators — or trade negotiations deteriorate, another bout of market volatility could ensue, potentially aligning with historical seasonal patterns where equities often struggle from late summer into fall.”

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep an eye on Thursday:

• Initial jobless claims data for the week ending May 17 will be out by 8:30 a.m. ET.

• The S&P flash U.S. services and manufacturing PMI for May will be released by 9:45 a.m. ET.

• April’s existing home sales will be announced by 10:00 a.m. ET.

• New York Fed President John Williams will speak at 2:00 p.m. ET.

Stocks In Focus:

Commodities, Gold, And Global Equity Markets:

Crude oil futures were trading lower in the early New York session by 1.20% to hover around $60.83 per barrel.

Gold Spot US Dollar fell 0.10% to hover around $3,312.13 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.169% at the 99.7170 level.

Asian markets were lower on Thursday as South Korea's Kospi, India's S&P BSE Sensex, Japan's Nikkei 225, Australia's ASX 200, Hong Kong's Hang Seng, and China’s CSI 300 indices declined. European markets were also lower in early trade.

Read Next:

• Cathie Wood’s Ark Invest Says Nuclear Energy Could Overtake Solar As Cheapest Power Source: Here’s A List Of Nuclear Energy Linked ETFs To Consider
  

Photo courtesy: Shutterstock