U.S. equity futures moved lower as traders monitor talks for any progress in ending Russia’s war on Ukraine.
The major futures indexes suggest a decline of 0.3% when the Wall Street session begins.
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Russia’s announcement that it would scale back military operations near Ukraine’s capital, Kyiv, came as negotiators meeting in Turkey began to lay out a possible deal to end the five-week-old war.
U.S. West Texas Intermediate (WTI) crude futures jumped $2.89, or 2.7%, to $107.02 a barrel, erasing a 1.6% drop on Tuesday.
Brent futures were up $2.75, or 2.5%, at $112.98, reversing a 2% loss in the previous session.
OIL TRADES HIGHER AS INVENTORY FALLS SHARPLY
Wednesday morning, the DOE’s Energy Information Administration will release its inventory report for last week. Crude stockpiles are expected to fall by just over 1 million barrels, after a large and surprise draw of 2.508 million barrels the prior week.
Movement in the bond market on Tuesday has Wall Street concerned about the possibility of a recession. Bond investors pushed up short-term rates to the point where yields on the two-year Treasury were actually higher than the 10-year Treasury.
On the economic docket, the payroll processing firm ADP releases its National Employment report for March. Economists are looking for a gain of 450,000 private-sector jobs, trailing a much stronger than expected tally of 475,000. It will be the first of this week’s labor-related reports ahead of Friday’s release of the monthly jobs report from the government.
The Commerce Department will release the final estimate of 4Q GDP. The Refinitiv forecast is for a seasonally adjusted annual growth rate of 7.1%. That’s slightly above the second estimate of 7.0%, and well above the 2.3% growth rate in the third quarter.
Bitcoin traded around $47,000.
In Asia, the Nikkei 225 in Tokyo fell 0.8%, the Hang Seng in Hong Kong gained 1.4% and China’s Shanghai Composite Index rose 1.9%.
On Wall Street, the benchmark S&P 500 index rose 1.2% to 4,631.60 for its fourth straight daily gain.
|I:DJI||DOW JONES AVERAGES||35294.19||+338.30||+0.97%|
|I:COMP||NASDAQ COMPOSITE INDEX||14619.636239||+264.73||+1.84%|
The Dow Jones Industrial Average advanced 1% to 35,294.19. The Nasdaq composite added 1.8% to hit 14,619.64.
Nintendo shares slumped in Tokyo trading after the gaming firm said it was pushing back the release of the hotly awaited sequel to “Legend of Zelda: Breath of the Wild” to spring 2023 from this year’s planned debut.
Lululemon shares rose 8% in extended trading as the company also posted better-than-expected fourth-quarter adjusted earnings despite reduced store hours due to an increase in Omicron infections.
Chewy shares sank roughly 13% in after-hours trading session after the company issued higher-than-expected losses in the fourth quarter.
The Associated Press contributed to this report.