5 things to know before the stock market opens Thursday, Sept 30

Here are the most important news, trends and analysis that investors need to start their trading day:

Dow futures rose about 100 points, or roughly 0.3%, on Thursday, the final day of September and the third quarter. S&P and Nasdaq futures saw similar percentage gains as rising bond yields took a pause, one day after jumping rates hit tech stocks again. The Nasdaq fell Wednesday for its fourth straight session. However, the S&P 500 was able to break a two-day losing streak, and the Dow Jones Industrial Average rebounded from Tuesday’s sell-off. All three stock benchmarks were lower for the month.

• For the third quarter, as of Wednesday’s close, the S&P 500 was actually up more than 1.4% on pace for its sixth positive quarter in a row, the best run since a nine-quarter streak that ended in the final three months of 2017.
• For the Dow and Nasdaq, Thursday’s trading could determine whether they end Q3 in positive or negative territory.
• Looking ahead, October has had sharp sell-offs, but it’s typically the start of a better seasonal performance for stocks into the end of the year. All three benchmarks have amassed solid gains in 2021.

Bed Bath & Beyond shares tanked more than 18% in Thursday’s premarket trading as the company said it saw a steep drop-off in traffic in August, dealing a blow to its fiscal second-quarter results. The big-box retailer is also dealing with industry-wide supply chain complications, which CEO Mark Tritton said have been “pervasive.”

The 10-year Treasury yield dipped Thursday but remained near highs back to June at around 1.52%. Federal Reserve Chairman Jerome Powell returns to Capitol Hill, this time to testify before the House Financial Services Committee. On Tuesday, he told the Senate Banking Committee that inflation pressures could last longer than expected. Powell echoed that warning at an ECB event Wednesday.

The Labor Department is out with its weekly look at initial jobless claims at 8:30 a.m. ET. Economists expect first-time filings for unemployment benefits to drop to 335,000 for the week ending Sept. 25.

At the same time, the Commerce Department is set to issue its third look at second-quarter gross domestic product. The economy’s annual growth rate in Q2 is expected to remain at the same 6.6% that was estimated a month ago.