Stock futures rose slightly on Thursday, as the market tried recover some of the steep losses suffered in 2022.
Futures tied to the S&P 500 traded 0.4% higher, while the Dow Jones Industrial Average futures were up 42 points, or 0.1%. Nasdaq 100 futures rose 0.7%.
The major averages came into Thursday’s session rising strong gains for the week. The S&P 500 and Nasdaq Composite are up more than 2% in that time, while the Dow has risen nearly 2%.
To be sure, stocks closed slightly lower on Wednesday as investors weighed the likelihood of a recession.
Federal Reserve Chair Jerome Powell told Congress the central bank is “strongly committed” to bringing down inflation. He also noted that a recession is a “possibility,” a fear that has continued to weigh on Wall Street.
“The odds are more likely in favor of a recession than not,” Dan Greenhaus, Solus Alternative Asset Management chief strategist, said on CNBC’s “Closing Bell: Overtime.” “That speaks to the degree of tightening that the Federal Reserve is going to have to do now, having not done so in prior periods when perhaps they would have avoided some of the problems that are going to happen as a result.”
“Unfortunately, it’s going to be more economic pain than people at least six months ago anticipated, but are increasingly coming around to the reality that that’s probably what’s going to happen,” he added.
On Thursday, investors will be looking forward to fresh jobless claims data. Powell will also give remarks to the House, after having addressed the Senate Wednesday. The remarks are part of a congressionally mandated semiannual report on monetary policy.