U.S. equity futures pointed slightly higher early Thursday, suggesting Wall Street could build on the previous session’s gains as investors cautiously wade back into the market.

The major indexes are poised to edge up in early trading, with some traders looking to scoop up stocks at relatively attractive levels even after Wednesday’s rebound. Despite recent strength, the S&P 500, Nasdaq, and Dow remain well below last week’s record highs.

Concerns over a potential AI-driven bubble and a near-term correction continue to linger, but overall momentum still appears tilted to the upside.

Economic news remains limited amid the ongoing U.S. government shutdown, though new data from Challenger, Gray & Christmas showed a sharp rise in corporate layoffs last month.

According to the report, U.S. employers announced 153,074 job cuts in October, up 183% from September’s 54,064 and 175% higher than the 55,597 cuts seen a year earlier.

“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,” said Andy Challenger, workplace expert and chief revenue officer at the firm.

He added, “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”

So far this year, employers have announced more than 1.09 million job cuts, the highest level for the first ten months of a year since 2020.

Company movers

Snap (NYSE: SNAP) shares surged nearly 20% in premarket trading after the social media company unveiled a $500 million share buyback program and issued upbeat fourth-quarter revenue guidance.

AppLovin (NASDAQ: APP) also gained premarket after reporting better-than-expected third-quarter earnings, while DoorDash (NASDAQ: DASH) tumbled over 10% after missing profit forecasts.

Market recap

Following Tuesday’s selloff, stocks rallied through most of Wednesday’s session before pulling back slightly late in the day. Even so, the major indexes ended higher:

• Nasdaq rose 0.7% to 23,499.80
• Dow Jones added 0.5% to 47,311.00
• S&P 500 climbed 0.4% to 6,796.29

Much of Wednesday’s strength was driven by bargain hunting after Tuesday’s steep drop, which stemmed partly from valuation worries. Sentiment was also helped by upbeat U.S. economic data.

ADP reported that private sector employment increased by 42,000 jobs in October, rebounding from a 29,000-job decline the prior month. Economists had expected a gain of only 25,000 jobs.

Meanwhile, the Institute for Supply Management (ISM) said its services PMI rose to 52.4 in October, up from 50.0 in September — the strongest level since February — signaling renewed expansion in the sector.

Despite a late-session pullback, several sectors showed notable strength. Airline stocks soared, with the NYSE Arca Airline Index up 5.8%, while biotech, semiconductor, and computer hardware shares also posted solid gains. In contrast, housing and software stocks moved lower, even as gold miners benefited from firmer metal prices.

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