(RTTNews) - After coming under pressure late in the previous session, stocks are likely to move back to the upside in early trading on Thursday. The major index futures are currently pointing to a sharply higher open for the markets, with the S&P 500 futures up by 1.3 percent.
Traders may once again look to pick up stocks at reduced levels after bargain hunting contributed to early strength on Wednesday before the late-day pullback.
The downturn seen during yesterday's trading dragged the Dow down to a three-month closing low, while the S&P 500 hit its lowest closing level in well over a month.
Stocks may also benefit from an extended pullback by the price of crude oil, as U.S. crude oil futures tumble by 2.5 percent and drop below $100 a barrel.
U.S. crude oil futures plunged by more than 3 percent on Wednesday amid optimism about the steps Saudi Arabia is taking to avoid supply disruptions after the closure of its key East-West pipeline.
Treasury yields have moved to the downside along with crude oil prices, with the yield on the benchmark ten-year note slumping after ending the previous session roughly flat.
In U.S. economic news, a report released by the Labor Department showed an unexpected decline in first-time claims for U.S. unemployment benefits in the week ended September 12th.
The Labor Department said initial jobless claims fell to 196,000, a decrease of 10,000 from the previous week's unrevised level of 206,000. Economists had expected jobless claims to inch up to 208,000.
Stocks turned in a strong performance throughout much of the trading day on Wednesday but came under pressure in the latter part of the session. The major averages pulled back well off their highs of the session and into negative territory.
The Dow led the way lower, slumping 631.21 points or 1.2 percent to a three-month closing low of 51,461.90. The S&P 500 fell 33.92 points or 0.5 percent to 7,551.81, its lowest closing level in well over a month, while the tech-heavy Nasdaq posted a more modest loss, edging down 3.15 points or less than a tenth of a percent to 25,978.42.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index fell by 0.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 0.8 percent.
In commodities trading, crude oil futures are tumbling $2.78 to $99.65 a barrel after plummeting $3.40 to $102.43 a barrel on Wednesday. Meanwhile, after jumping $54.70 to $4,387.50 an ounce in the previous session, gold futures are climbing $20.10 to $4,407.60 an ounce.
On the currency front, the U.S. dollar is trading at 155.63 yen versus the 156.27 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1485 compared to yesterday's $1.1464.