1. Investors await U.S. GDP report
All eyes on Wall Street will be on the release of preliminary second quarter growth figures due at 8:30AM ET.
Market analysts expect the data to show that the economy rebounded 2.6% in the three months ended June 30, following a 0.2% contraction in the first quarter, as an improvement in consumer spending and housing offset the drag from trade and the energy sector.
Also at 8:30AM, the U.S. is to release weekly data on initial jobless claims. The data is expected to show that claims rose to 270,000 last week from 255,000 in the preceding week, which was a 40-year low.
2. Markets digest Fed statement
The Federal Reserve sounded more upbeat about the economy following its policy meeting, leaving the door open for an interest-rate hike as soon as September.
In its rate statement published Wednesday, the Fed described the economy as expanding "moderately," while upgrading its view of the labor and housing markets.
The central bank gave no clear indication of the timing of the next rate hike, but left itself room to act as early as September, citing "solid" gains in the job market and "additional" improvement in the housing sector.
U.S. interest rates have remained near zero since the depths of the Global Financial Crisis in 2008.
3. Wall Street earnings keep rolling in
Procter & Gamble Company (NYSE:PG), Time Warner Cable (NYSE:TWC), ConocoPhillips (NYSE:COP), Colgate-Palmolive (NYSE:CL) and Valero Energy (NYSE:VLO) are due to report quarterly earnings ahead of Thursday's opening bell.
After Thursday’s close of trading, LinkedIn (NYSE:LNKD), Electronic Arts (NASDAQ:EA) and Amgen (NASDAQ:AMGN) are scheduled to report.
4. Chinese stocks plunge in final hour of trade
The Shanghai Composite took investors on another volatile ride on Thursday, with shares plunging sharply in the last hour of trade amid reports that Chinese banks were investigating their exposure to the stock market.
Equity markets in China tumbled earlier this week, forcing policymakers to intervene and provide measures to boost liquidity and calm investors.
Chinese regulators pledged to buy more shares to stabilize markets, while the country's central bank hinted at more policy easing if needed.
On Monday, the Shanghai Composite tumbled 8.5%, the biggest one-day drop since February 2007, amid reports that government buying of stocks and securities has slowed.