Stock futures fell in early trading Thursday as peace talks between Ukraine and Russia showed little progress on key issues.
Futures on the Dow Jones Industrial Average dipped 273 points, or 0.82%. S&P 500 futures shed 0.77% and Nasdaq 100 futures were 1.11% lower.
Negotiations between Russian and Ukrainian foreign ministers ended with little progress on matters including a cease-fire and safe passage of fleeing civilians.
Markets have been tied closely to the conflict and have been inversely correlated with energy prices, which have been on a tear higher during the Russia-Ukraine war. A day after West Texas Intermediate crude tumbled more than 12%, the U.S. benchmark climbed about 4% to $112.98. Brent crude oil, which tumbled 13% on Wednesday, nearly 5% on Thursday to $116.50.
Bonds yields, which have been sensitive to inflation concerns, were mixed in early trading. The yield on the benchmark 10-year Treasury note nudged lower to 1.94% ahead of key inflation data coming later Thursday morning.
The consumer price index will be released at 8:30 a.m. ET, and economists expect headline inflation rose 0.7% last month, or 7.8% from the year prior, and 6.4% excluding energy and food, according to Dow Jones estimates.
Weekly initial jobless claims are also slated to come out Thursday and are expected to total 216,000.
Elsewhere in markets, Amazon shares jumped more than 6% in premarket trading after the company announced a 20-for-1 stock split and $10 billion buyback. CrowdStrike rallied nearly 11% premarket following an earnings beat and raising its outlook.
In Wednesday’s trading session, the Dow rose 653.61 points, or 2%. The S&P 500 climbed 2.6% for its best day since June 2020. The Nasdaq Composite gained 3.6% for its best day since November 2020.
Other commodities that have seen significant rallies since the war in Ukraine also pulled back Wednesday, including silver and wheat. Investors have been worried about the impact of high prices on economic growth.
Wednesday’s rally in the stock market was broad-based, with nine out of 11 sectors positive, led by technology. Gains in Big Tech names like Meta and Alphabet boosted the major averages.
“It is somewhat typical of a high volatility environment where you can get just wicked swings in both directions,” said Liz Ann Sonders, Charles Schwab chief investment strategist. “A relief rally is probably the best way to describe what happened in the markets. … It doesn’t surprise me to see a very sharp countertrend move.”
On the earnings front, companies including Oracle, Ulta Beauty and Rivian are set to report quarterly results Thursday.