European stocks are poised for a strong start on Thursday, buoyed by Micron Technology's optimistic revenue forecast which has fueled expectations for robust chip demand.
In Asia, stock markets rallied with Japanese indices leading the gains, as a weaker yen bolstered export-oriented stocks.
The dollar maintained its strength after experiencing its most significant rally since early June.
Gold prices traded near record highs, as recent weak U.S. economic data reinforced the argument for deeper interest-rate cuts by the Federal Reserve.
Eyes will be on Fed Chair Jerome Powell's speech later today, which is anticipated to provide fresh insights into the Fed's future rate actions.
On the economic data front, the U.S. will release reports on weekly jobless claims, durable goods orders, and personal income and spending this week.
Investors are also keenly awaiting the second-quarter GDP revision later today, along with Friday's pivotal reading on the PCE index—the Fed's preferred measure of inflation—to gauge the likelihood of a 50-basis-point rate cut in November.
Federal Reserve Governor Adriana Kuglar, in her overnight remarks, expressed strong support for last week's 50-basis-point rate cut and indicated she would back further cuts in the future.
In Europe, the market research firm GfK is set to release German consumer sentiment data for October later in the day. The forward-looking index is anticipated to come in at -22.4, compared to -22.0 in September.
The Swiss National Bank is expected to announce a monetary policy decision, with forecasts suggesting a cut in the key rate to 1.00 percent from 1.25 percent.
Oil prices extended their overnight losses in Asian trading due to concerns over demand and indications of increased Libyan production, which outweighed EIA data showing a larger-than-expected draw in U.S. inventories.
U.S. stocks closed lower overnight as investors weighed the health of the U.S. economy and the likelihood of another significant interest rate cut at the Fed's next meeting in November.
Housing market data offered a mixed view of the economy, with new home sales dropping sharply in August, while mortgage applications surged to the highest level since 2022.
The Dow fell by 0.7 percent, ending a four-session winning streak. The S&P 500 dipped by 0.2 percent, while the tech-heavy Nasdaq Composite finished slightly higher.
European stocks ended their two-day winning streak on Wednesday, dragged down by energy stocks as oil prices fell and following Sweden's central bank's signal of further easing after its third rate cut this year.
The pan-European STOXX 600 inched down by 0.1 percent. Germany's DAX dropped 0.4 percent, France's CAC 40 fell by 0.5 percent, and the U.K.'s FTSE 100 declined by 0.2 percent.
