By Saumya Vaishampayan
U.S. stock futures rose Thursday, ahead of a decision from the
European Central Bank that is expected to bring fresh stimulus in
the form of a bond-buying program.
Dow Jones Industrial Average futures added 42 points, or 0.2%,
to 17533. S&P 500 futures rose four points, or 0.2%, to 2031
and Nasdaq-100 futures gained two points, or 0.1%, to 4185. Changes
in stock futures don't always accurately predict moves in the stock
market after the opening bell.
Expectations of bond purchases have helped drive European stocks
to multiyear highs and European government bonds to record
lows.
Those expectations were heightened Wednesday after reports
detailed a proposal from the ECB's executive board that calls for
bond purchases of roughly EUR50 billion ($58 billion) a month that
would last for a minimum of one year.
The ECB news lifted U.S. stocks on Wednesday, which gained for a
third session in a row. The Dow rose 0.2% to 17554.28 and the
S&P 500 gained 0.5% to 2032.12.
Stocks have gained in recent years, partly due to easy monetary
policy that has helped keep interest rates low. The U.S. economy
has recovered enough for the Federal Reserve to consider an
eventual increase in interest rates. But continued stimulus efforts
from other major central banks are likely to ensure that global
rates remain low.
"The more important thing will be can a materially more
accommodative ECB turn around the funk in terms of European
economic conditions," said Jack Caffrey, equity portfolio manager
at J.P. Morgan Private Bank.
"It would be helpful from an earnings perspective if Europe can
begin gaining economic momentum," he added.
In commodity markets, crude-oil futures rose 2.4% to $48.90 a
barrel, boosting shares of some energy companies in premarket
trade. Gold futures lost 0.9% to $1281.80 an ounce.
The yield on the 10-year Treasury note rose to 1.909% from
1.851% on Wednesday. Yields rise as prices fall.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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