US pre-open: Stocks looks set to top record highs reached in previous session

Stock futures were calling major indices to start the session higher after Federal Reserve chairman Jerome Powell suggested the day before that the central bank was open to easing monetary policy in the near future.

As of 1220 BST, Dow futures were pointing to gains of 0.21% at the bell, while S&P 500 and Nasdaq-100 futures were calling the indices to open 0.22% and 0.25% firmer, respectively.

The Dow looked set to open higher on Thursday after it closed 76.71 points higher on Wednesday, while the S&P 500 briefly broke above 3,000 for the first time in history and the Nasdaq closed at an all-time high, as investors digested key testimony from Powell.

Powell signalled that the door was wide open to policy easing, telling lawmakers that there were increased risks bearing down on the US economy from overseas even as price pressures remained muted.

In his semiannual Monetary Policy Report to Congress, the Fed chair said global crosscurrents related to growth and trade had reemerged since policymakers met in May, with apparent progress on trade having since turned into greater uncertainty and with the central bank's contacts in business and agriculture reporting heightened concerns over trade developments.

"Since [the May policy meeting], based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook. Inflation pressures remain muted," he said. "And there is a risk that weak inflation will be even more persistent than we currently anticipate."

The Fed also released the minutes from its June policy meeting on Wednesday, reiterating that the case for easier monetary policy had strengthened and with "many" policymakers reportedly having been open to a rate cut.

In commodities, oil extended gains after closing at a seven-week high as a third of the Gulf of Mexico's crude output was stopped as a result of a storm.

Major producers such as BP and Chevron evacuated crew from offshore installations due to the storm, which held the potential to grow into a hurricane later in the week.

At 1220 BST, Brent Crude was up 0.66% at $67.45 a barrel, while West Texas Intermediate was changing hands at $60.78 a barrel - a 0.58% increase on the day.

In data news, jobless claims and inflation figures will be published at 1330 BST, while federal budget numbers were sett o be released at 1900 BST.

On the corporate front, Delta Air Lines will report its latest set of figures during the session.