US pre-open: Futures point to gains in final session of volatile month

Wall Street futures were in the green ahead of the bell on Thursday as major indices prepared to wrap up a losing month.

As of 1230 BST, Dow Jones futures were up 0.46%, while S&P 500 and Nasdaq-100 futures were 0.48% and 0.55% higher, respectively.

The Dow closed 90.73 points higher clawing back some of the losses recorded in the previous session.

Sentiment got a boost after Senate Majority Leader Chuck Schumer said the chamber had struck a deal to bypass a government shutdown, with Schumer stating he would organise a vote on for a stopgap measure to keep the government running into early December on Thursday. However, the deal would still need to make its way through the House.

Also in focus, the yield on the benchmark 10-year Treasury note was slightly higher at around 1.529% before the bell on Thursday, while the 30-year note was also a touch stronger at 2.073%

Market participants will also be keeping a keen eye on Federal Reserve chairman Jerome Powell, who will testify in front of the House Financial Services Committee at 1500 BST alongside Treasury Secretary Janet Yellen.

AvaTrade's Naeem Aslam said: "Futures in the United States and Europe are trading higher today, with the Dow and S&P 500 recouping some of Tuesday's losses, while the Nasdaq fell. The stock market's rebound was most likely driven by bargain hunters who saw the drop in stock prices as an opportunity.

"Today, investors will be watching the conversations of three FOMC members, Bostic, Evans, and Williams, to gain a better understanding of how the Federal Reserve sees the US economy growing. These events may cause a shift in equity indices."

On the macro front, final second-quarter US gross domestic product growth rate numbers and this week's jobless claims report will both be posted at 1330 BST, while September's Chicago PMI will follow at 1445 BST.

In the corporate space, Bed, Bath & Beyond will report earnings before the open.