Wall Street headed for mixed start on Thursday with investors preparing for the latest snapshot of economic growth and any signs that a big squeeze in shorted stocks has more to run.
Dow Eminis were up 52 points, or 0.19, SP 500 Eminis were off 5 points, or 0.12. Nasdaq 100 Eminis were off 50 points, or 0.5.
U.S. shares saw their sharpest falls in three months on Wednesday amid a squeeze on hedge funds holding short positions in stocks like GameStop that are being targetted by an army of retail buyers.
Investors were seeking refuge in U.S. dollar, with its index up at 90.72 from a January low of 89.206. Yields on the 10year U.S. Treasury bond were flat. US
The market smells a bit of blood, but it was unclear how far the squeeze has to go, said Ned Rumpeltin, European head of currency strategy at TD Securities. It does feel like markets are trying to find a bit of a floor here, he said.
The wait during Wednesday for a statement from the U.S. Federal Reserve probably kept some investors on the sidelines, but they would be freer to join in on Thursday, Rumpeltin said.
What happens as we head into the weekend? All these retail investors have some spectacular gains on paper will they be induced to cut and run and take profits?
The Commerce Departments snapshot at 1330 GMT of fourth quarter gross domestic product in the United States is expected to show the recovery from the pandemic losing steam as 2020 came to a close.
U.S. jobless claims for the latest week were…