
Dow futures exhibit a subdued stance in anticipation of a series of crucial economic indicators, as investors strive to decipher the Federal Reserve’s path regarding interest rates. Accenture and Jabil are poised to report a series of earnings prior to the market’s opening, while President Donald Trump is allegedly preparing to sign an executive order concerning a prospective agreement related to TikTok’s U.S. assets.
Dow futures remained near the flatline on Thursday following a pullback in equity markets during the prior session. As of 03:44, futures contracts associated with the Dow, S&P 500, and Nasdaq 100 exhibited minimal variation. On Wednesday, the primary indices on Wall Street experienced a decline, momentarily pausing after a vigorous recent rally. Investors were processing the measured remarks from Federal Reserve Chair Jerome Powell, who offered no guidance regarding the future trajectory of interest rates after the recent 25-basis point reduction in borrowing costs. Markets were analyzing impressive new U.S. single-family home sales data for August, with analysts indicating that the figures might be viewed as evidence of a strong economy that may not require further assistance from Fed rate reductions. Focus is shifting towards the impending release of a crucial inflation metric on Friday, which is under close scrutiny by the central bank. Micron’s shares experienced a decline of 2.8%, even as the chipmaker reported robust quarterly results and provided optimistic financial guidance. Analysts noted that the downturn may indicate caution regarding an artificial intelligence-induced surge in valuations for numerous technology sector entities.
Accenture is set to be among the prominent figures in a series of corporate earnings reports released before the market opens on Thursday. The consultancy is projected to report fourth-quarter adjusted per-share earnings of $3.00 on revenue of $17.36 billion, while providing guidance for current-quarter revenue of $18.46 billion. Accenture’s perspective on the implications of AI is expected to be a focal point, as the firm has prioritized consulting in this area to mitigate the broader economic uncertainty triggered by extensive U.S. tariffs. In the last quarter, generative AI bookings reached approximately $1.5 billion, while total bookings, which serve as an indicator of future revenue secured through contracts, amounted to $19.70 billion. A deceleration in government expenditure is expected to impact fiscal fourth-quarter and annual revenues by 2%.
Joining Accenture in the pre-open reports is electronics component manufacturer Jabil. Shares of the Florida-headquartered group and Apple supplier have increased by over 57% year-to-date, driven by positive sentiment regarding demand for infrastructure services related to data centers. Firms are competing to integrate AI into their operations, creating a heightened demand for the data centers that provide the necessary computing power for this technology. Jabil announced earlier this year its intention to invest $500 million in the United States over the coming “several” years, aiming to bolster support for clients in cloud and AI infrastructure. According to reports, the fiscal fourth-quarter core per-share profit is projected to be $2.92, with net revenue anticipated at $7.58 billion.
In other contexts, U.S. President Donald Trump is expected to sign an executive order on Thursday that will assert that a deal being negotiated by the White House regarding TikTok’s U.S. operations will comply with the stipulations outlined in a 2024 law, according to Reuters. According to a source, the directive will encompass an additional extension to the deadline for ByteDance, the Chinese owner of the short-form video application, to divest its U.S. assets or face a shutdown in the country. Trump has consistently postponed the enforcement of this law, enacted by Congress in 2024, contending that it will provide his administration with additional time to identify American investors and guarantee that the new ownership of TikTok U.S. adheres to the legislation. According to reports, a preliminary agreement is expected to result in existing investors, including trading firm Susquehanna International, along with a consortium of U.S. backers such as software giant Oracle and private-equity firm Silver Lake, acquiring approximately 80% of TikTok’s U.S. operations. Significantly, a revised iteration of TikTok’s crucial algorithm is set to undergo retraining, while the service will continue to be accessible through the same application.
Gold prices remained stable, bolstered by a slightly weaker U.S. dollar as investors prepared for the forthcoming economic data releases this week. The data may provide further insight into the trajectory of U.S. interest rates. Reduced borrowing costs can diminish the opportunity cost associated with holding non-yielding assets like bullion, enhancing the appeal of gold. On Thursday, the weekly jobless claims report is anticipated to reflect approximately 230,000 claims. The government is set to release its second estimate of second-quarter GDP on Thursday. The underlying reading of the personal consumption expenditures price index, an inflation gauge closely monitored by the Federal Reserve, for August is anticipated to register at 0.2% month-on-month. Spot gold was last up 0.4% at $3,750.99 an ounce by 03:43, following a retreat from Tuesday’s all-time peak of $3,790.82 per ounce. U.S. Gold Futures for December increased by 0.3%, reaching a price of $3,780.80.