FX.co ★ U.S. Stocks May Lack Direction Following Yesterday's Rebound

Following a substantial recovery in the previous session, stocks may display a slight hesitancy during early trading on Wednesday. Major index futures suggest a slightly lower market opening, with S&P 500 futures declining by only 0.1 percent.

The absence of major U.S. economic data might cause some traders to hold off momentarily, anticipating several key reports in the upcoming days. Particularly on Thursday, investors are waiting for the Labor Department's report on producer price inflation for February, anticipated to provide further insight into interest rates’ outlook.

Producer prices are projected to increase by 0.3 percent in February, on par with January's rise. Simultaneously, the yearly growth rate of producer prices is expected to quicken to 1.1 percent from 0.9 percent. Furthermore, weekly jobless claims and retail sales reports, expected to show a regain in February following January's slump, are scheduled to be released on Thursday.

Friday's trading might be influenced by responses to reports on import and export prices, industrial production, and consumer sentiment. The University of Michigan's preliminary report on consumer sentiment for March, including an analysis of inflation expectations, might draw attention.

Following a downward trend during Friday and Monday's sessions, stocks made a robust recovery during Tuesday's trading. Major averages fluctuated throughout the session but concluded firmly on the positive side. Encouraging the surge, the tech-centric Nasdaq increased 246.36 points or 1.5 percent to 16,265.63. Alongside, the S&P 500 and the narrower Dow also made gains.

Internationally, Asian-Pacific stock markets ended with mixed results on Wednesday. While China's Shanghai Composite Index declined by 0.4 percent, and Japan's Nikkei 225 Index dwindled by 0.3 percent, South Korea's Kospi grew by 0.4 percent. Europe's major markets also present a mixed bag of results.

During commodity trading, crude oil futures are ascending $1.34 to $78.90 a barrel, following a $0.37 decline to $77.56 a barrel on Tuesday. Gold is trading at $2,169.60 an ounce, marking a $3.50 uptick from the previous session's close at $2,166.10. Meanwhile, the U.S. dollar is trading at 147.97 yen, slightly higher than Tuesday's closure at 147.68 yen in New York, and compared to the euro, the dollar stands at $1.0936, a minuscule increase from yesterday's $1.0927.