U.S. equity futures pointed to a higher open on Thursday as Treasury yields eased, providing a lift to major benchmarks. The Dow Jones Industrial Average was indicated up 0.4% at 53,287 points, while the S&P 500 was set to rise 0.4% and the Nasdaq 100 was 0.2% lower. In Europe, the Swiss Market Index (SMI) climbed 0.5% by midday, with gains led by Roche, which rose 1.8% after announcing a licensing agreement with China’s Simcere Pharmaceutical for a trispecific antibody.
Swiss inflation data released Thursday showed a sharper-than-expected acceleration, pushing the annual rate to 0.8% from 0.4% in July—the highest since August 2022. Economists had forecast a rise to 0.5-0.6%. The franc strengthened against the euro to 0.9392 from 0.9410 earlier, and against the dollar to 0.8092. The move follows a 0.2% gain in the SMI, though the index remained directionally mixed with Nestlé down 0.8%.
Geopolitical risks in the Middle East continued to weigh on sentiment, with oil prices retracing some of their earlier gains after a brief stabilization. Brent crude futures hovered near $75 per barrel, while WTI traded around $72, down from intraday highs above $77. Analysts at Candriam noted that markets were reacting to short-term oil volatility rather than establishing a structural trend. "It’s a market that’s hard to navigate," said Nadege Dufosse of Candriam.
In corporate news, Broadcom shares fell 3.7% in pre-market trading after reporting quarterly results that met revenue expectations but disappointed on guidance. The company cited strong AI demand but provided a cautious outlook, citing macroeconomic uncertainties. Snowflake surged 23% after posting quarterly earnings and revenue that exceeded estimates and raising its full-year revenue guidance. Ultragenyx Pharmaceutical slumped 46% after its experimental gene therapy failed to meet the primary endpoint in a Phase 3 trial. Victoria’s Secret dropped 20% on weak quarterly revenue of $1.61 billion and a downwardly revised 2026 revenue outlook between $7.10 billion and $7.18 billion, below prior guidance.
Swiss heavyweights showed mixed performance. Novartis held early gains following positive trial data from Tuesday, while Nestlé extended declines. Logitech advanced 2.6% and Givaudan rose 1.5% after Deutsche Bank upgraded its rating following the aroma and fragrance maker’s investor day. Partners Group gained 2.0% after analysts resumed coverage with an Equal Weight rating and a target of 775 francs, while Kardex was cut to Hold by Research Partners with a target of 253 francs.
Investors are eyeing Friday’s U.S. nonfarm payrolls report for further clues on the labor market and the Federal Reserve’s policy trajectory. A stronger-than-expected reading could reinforce expectations for a near-term rate hike, with markets pricing in a 60% chance of a 25-basis-point increase at the Fed’s September meeting. Earlier in the week, Fed officials had signaled caution amid elevated oil prices and persistent inflation concerns.
In Europe, preliminary PMI data showed a slight softening in business sentiment, though the decline remained modest. The focus now shifts to U.S. labor market indicators, including initial jobless claims, which could provide additional signals ahead of the payrolls report.
