US pre-open: Stock futures fall as oil prices snap rally

US stock futures fell on Thursday as oil prices ended its recent rally and investors showed caution ahead of the Federal Reserve’s policy meeting.

Dow Jones Industrial Average futures dropped 52 points to 17,943, S&P 500 futures dipped 7.85 points to 2,110.25 and Nasdaq futures declined 14 points to 4,505.

Oil prices fell in early Europe trade after reaching an 11-month high on Wednesday. At 1157 BST West Texas Intermediate crude edged down 0.88% to $50.78 per barrel and Brent decreased 1.02% to $51.98 per barrel.

Meanwhile, investors held back ahead of next week’s Federal Reserve policy announcement. However, many expect the Fed will keep interest rates unchanged after a weak non-farm payrolls report last Friday and a dovish speech by chair Janet Yellen.

More recent on the labour market, data from the Labor Department on Wednesday showed job openings rose 2% to 5.8m, but hiring slipped for the second straight month to just under 5.1m.

“The sudden stop in employment growth rules out any chance of a rate hike from the Fed at next week’s FOMC meeting, particularly now that the UK vote on whether to leave the European Union (EU) appears to be going down to the wire,” said Capital Economics.

On Thursday’s US economic calendar, a report on initial jobless claims is due at 1330 BST, along with wholesale inventories data at 1500 BST and figures on the household change in net worth for the first quarter at 1700 BST.

Among corporate stocks, Apple shares slid in pre-market trade after the company said it will allow more apps to charge customers via subscriptions.

Boston Scientific Corp. gained ahead of the bell on news it is restructuring to save the medical device maker up to $150m per year by 2020.

Google parent Alphabet edged higher after the company said it wants to beam high-speed internet wirelessly to homes, using technology that it claimed is cheaper than laying cables.

Restoration Hardware Holdings plunged after the retailer late Wednesday said it swung to a first-quarter loss and lowered its guidance for 2016.