US equity index futures down; oil continues to pressure

US stock index futures were pointing to a lower open in early trading hours on Thursday, with market players awaiting further economic data later in the day.

Wall Street top three indexes were down by the end of Wednesday’s session, with oil prices extending losses despite upbeat inventory data, weighing on energy sector stocks.

The S&P 500 was dragged by energy stocks, which fell by 1.6 percent. The US Energy Information Administration reported a crude inventory reduction of 2.5 million barrels, below the 2.1 million barrels decline initially forecasted by market analysts.

The US WTI for August delivery retreated 2.3 percent to settle at $42.53 a barrel. The Dow Jones industrial average eased nearly 55 points, with Caterpillar on top of decliners. The Nasdaq composite was up by 0.7 percent, with biotechnology stocks leading other components higher.

• Dow Jones Industrial Average: -57.11 / -0.27% / 21410.03
• Standard & Poor’s 500: -1.42 / -0.06% / 2435.61
• Nasdaq Composite: 45.92 / 0.74% / 6233.95

On the data front, mortgage applications marked a 0.6 percent build. Existing homes sales increased in May by 1.1 percent to a seasonally adjusted annual rate of 5.62 million units.

No major reports are scheduled on the day. Initial jobless claims are set for release as of 12:30 GMT. Investors will also be paying attention to a speech from Fed Governor Jerome Powell at 14:00 GMT. Traders are looking for hints on the future of interest rates for this year.

According to Fed funds tracked by CME Group’s FedWatch tool, chances for a rate hike in September are currently standing around 16.4 percent, while at 40.9 percent for December.