By Sara Sjolin, MarketWatch , Ryan Vlastelica

Nasdaq and Russell 2000 are coming off records

U.S. stock-index futures pointed to modest gains at the open on Thursday, suggesting the recent uptrend in equities was likely to continue, with financial shares leading the move higher amid a shift in the outlook for tighter monetary policy in both the U.S. and Europe.

What are markets doing?

Futures for the Dow Jones Industrial Average rose 53 points, or 0.2%, to 25,193, while those for the S&P 500 index added 2.30 points, or 0.1%, to 2,774.50. If the S&P closes in positive territory, that will mark its fifth straight daily gain, its longest streak since February.

Futures for the Nasdaq-100 index were virtually unchanged at 7,211.50

The small gains come after both (http://www.marketwatch.com/story/dow-set-to-lead-wall-street-higher-on-signs-of-thawing-trade-tensions-2018-06-06) the Nasdaq Composite Index and small-cap Russell 2000 index closed at records. The Dow posted its biggest percentage gain since April 10 and ended at its highest level since March 12. The S&P 500 rallied 0.9% and ended at its highest since March.

What is driving the market?

The positive sentiment from Wednesday carried over into Thursday's early action, with banks among the biggest advancers premarket. Financial-services shares outperformed on Wednesday as bond yields climbed after European Central Bank officials suggested they are ready to reveal more about their plans for exiting an aggressive quantitative-easing program at their meeting next week.

The market is now pricing in an about 90% chance of a rate rise in July 2019 (https://www.reuters.com/article/us-eurozone-money-markets/money-markets-almost-fully-pricing-in-ecb-rate-hike-by-july-2019-idUSKCN1J20WK), compared with last week, when a hike in October 2019 was considered the most likely outcome, according to Reuters.

Treasury yields continued slightly higher on Thursday with the 10-year benchmark rate up 1.4 basis points at 2.988%, according to FactSet.

Yields rise as bond prices fall, and climbing rates are generally bullish for banks' business models.

What are strategists saying?

"U.S. equities have thus far proven very resilient as solid economic growth, strong corporate fundamentals and still accommodative Fed monetary policy are largely offsetting trade and geopolitical jitters as well as worries about higher interest rates," said Alec Young, managing director of global markets research at FTSE Russell.

Don't miss:London Stock Exchange's glitch--just the latest high-profile outage to rile traders (http://www.marketwatch.com/story/london-stock-exchanges-glitch-just-the-latest-high-profile-outage-to-rile-traders-2018-06-07)

Stock movers

In the banking sector, shares of Goldman Sachs Group Inc.(GS) rose 0.7% ahead of the bell, Citigroup Inc. (C) climbed 0.7%, JPMorgan Chase & Co.(JPM) added 0.4% and Wells Fargo & Co.(WFC) put on 0.5%.

Five Below Inc.(FIVE) jumped 16% premarket after the discount retailer late Wednesday reported earnings that beat forecasts (http://www.marketwatch.com/story/five-below-shares-rise-after-earnings-beat-strong-guidance-2018-06-06).

Johnson & Johnson(JNJ) tacked on 0.4% in thin premarket trade after Fortive Corp.(FTV) said late Wednesday it agreed to buy Johnson & Johnson's Advanced Sterilization Products business for $2.7 billion (http://www.marketwatch.com/story/fortive-to-acquire-johnson-johnson-sterilization-business-for-27-billion-2018-06-06). Fortive shares rose 1.4%.

Twitter Inc.(TWTR) slipped 0.5% before the open after saying late Wednesday it plans to sell at least $1 billion in convertible bonds (https://www.wsj.com/articles/twitter-plans-to-sell-1-billion-in-convertible-debt-1528326076).

Furniture retailer Conn's Inc.(CONN) jumped 21% after reporting earnings that topped forecasts (http://www.marketwatch.com/story/conns-shares-soar-18-premarket-after-earnings-beat-2018-06-07).

Biogen Inc.(BIIB)entered an exclusive option agreement (http://www.marketwatch.com/story/biogen-enters-exclusive-option-agreement-to-acquire-tms-treatment-for-acute-stroke-2018-06-07) with TMS Co. Ltd. to acquire a treatment for acute stroke.

General Electric Co.(GE) introduced a new company (http://www.marketwatch.com/story/ge-unveils-new-airxos-company-to-manage-unmanned-vehicle-traffic-2018-06-07), AiRXOS, which will integrate air and ground space to help manage traffic for unmanned vehicles.

What's on the economic calendar?

Initial jobless claims fell slightly in early June (http://www.marketwatch.com/story/jobless-claims-edge-lower-to-222000-in-early-june-2018-06-07), keeping the rate of layoffs in the U.S. near a 50-year low.

Household debt numbers for the first quarter are expected at noon Eastern and consumer credit for April are slated for 3 p.m.

There are no Federal Reserve speakers as the central bank is in its blackout period ahead of its meeting next week.

(END) Dow Jones Newswires

June 07, 2018 09:24 ET (13:24 GMT)