(Reuters) – U.S. stock index futures rose on Thursday ahead of a shortened trading session on hopes of a gradual economic rebound, while Alibaba (NYSE:BABA) slumped after China launched an antitrust investigation into the e-commerce giant.
The S&P 500 and the Dow ended higher on Wednesday as investors pivoted to cyclical stocks that stand to benefit most during a recovery, encouraged by COVID-19 vaccine rollouts and passing of the coronavirus relief bill.
The so-called rotation weighed on the tech-dominated Nasdaq, which ended lower.
Investors also cheered reports that Britain and the European Union were on the cusp of striking a narrow Brexit trade deal.
Meanwhile, President Donald Trump on Wednesday vetoed a bipartisan defense policy bill and raised the prospect that the United States could face a government shutdown during a pandemic.
Alibaba Group plunged 7.3% after China launched an antitrust investigation into the commerce major as part of an accelerating crackdown on anticompetitive behavior.
At 6:37 a.m. ET, Dow e-minis were up 50 points, or 0.17%, S&P 500 e-minis were up 7.75 points, or 0.21%, and Nasdaq 100 e-minis were up 17.75 points, or 0.14%.
Markets will close at 1:00 PM ET on Thursday and will be closed for Christmas holiday on Friday.
Energy stocks, including Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX), rose slightly in premarket trade, tracking strength in the crude market as a drop in U.S. stockpiles and hints of an imminent Brexit deal underpinned oil prices. [O/R]
