Following the strength seen in the previous session, stocks may give back some ground in early trading on Thursday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 48 points.
The downward momentum on Wall Street comes as traders continue to digest the tax reform plan unveiled by President Donald Trump.
The long-awaited tax reform plan is seen as the biggest overhaul to the U.S. tax system in thirty years and includes a reduction in the corporate tax rate to 20 percent.
While Republicans did not provide details about the cost of the tax cuts would be offset, Trump’s top economic advisor Gary Cohn predicted the plan would be paid for by economic growth.
“We think we can drive a lot of business back to America, we can drive jobs back to America, we can make ourselves very competitive,” Cohn told CNBC. “We think we can pay for the entire tax cut through growth over the cycle.”
On the U.S. economic front, the Commerce Department released a report showing economic activity increased by slightly more than previously estimated in the second quarter.
The report said gross domestic product jumped by 3.1 percent in the second quarter compared to the previously estimated 3.0 percent growth. Economists had expected the pace of GDP growth to be unrevised.
A separate report from the Labor Department showed a rebound in initial jobless claims in the week ended September 23rd.
The report said initial jobless claims rose to 272,000, an increase of 12,000 from the previous week’s revised level of 260,000.
Economists had expected jobless claims to rise to 270,000 from the 259,000 originally reported for the previous week.
Stocks moved mostly higher over the course of the trading day on Wednesday following the lackluster performance seen on Tuesday.
The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts. While the Nasdaq jumped 73.10 points or 1.2 percent to 6,453.26, the Dow rose 56.39 points or 0.3 percent to 22,340.71 and the S&P 500 climbed 10.20 points or 0.4 percent to 2,507.04.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Thursday. Japan’s Nikkei 225 Index rose by 0.5 percent, while Hong Kong’s Hang Seng Index slid by 0.8 percent.
The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index has dipped by 0.2 percent, the French CAC 40 Index is just above the…