Investing.com - U.S. stock futures pointed to a higher open on Thursday, as Wall Street looked set to extend strong gains from the prior session, when it notched its biggest one-day gain in four years.
During early morning hours in New York, the blue-chip Dow futures rallied 195 points, or 1.2%, the S&P 500 futures jumped 21 points, or 1.1%, while the Nasdaq 100 futures rose 60 points, or 1.42%.
On Wednesday, the Dow surged more than 600 points, the S&P 500 soared 3.9% to emerge out of correction territory, while the Nasdaq climbed 4.2%, boosted by upbeat economic data and dovish comments from a key Federal Reserve official.
Core capital goods orders, a closely watched proxy for business spending, rose 2.2% last month, the biggest increase since June last year.
Meanwhile, New York Federal Reserve President William Dudley said that the case for a rate hike in September is "less compelling" given international developments and volatility in financial markets. Dudley is a voting member of the Federal Open Market Committee.
Investors awaited the release of revised U.S. second quarter economic growth data later Thursday for a fresh reading on the strength of the economy.
The U.S. Commerce Department will publish its second estimate on second quarter growth figures at 8:30AM ET. Market analysts expect the data to show that the economy grew 3.2% in the three months ended June 30, up from a preliminary estimate of 2.3%, as an improvement in consumer spending and housing offset the drag from the energy sector.
The U.S. will also release a weekly report on initial jobless claims at 8:30AM as well as data on pending home sales for July at 10:00AM, amid expectations for an increase of 1.0% after falling 1.8% a month earlier.
Market participants also focused on the Federal Reserve's annual meeting of top central bankers and economists in Jackson Hole, Wyoming, due to begin later Thursday.
While Fed chair Janet Yellen is not expected to attend, Fed Governor Stanley Fischer is scheduled to participate in a panel discussion about U.S. inflation developments on Saturday.
His comments will be closely watched for further hints regarding the strength of the economy and on the timing of a Fed rate hike.
China's slowing economy and global market turmoil have created fresh uncertainty over whether the U.S. central bank will start hiking interest rates next month.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
Some traders believe the Fed could postpone raising interest rates until December as officials are likely to remain concerned over global growth and inflation pressures due to China’s shock currency devaluation move and weak commodity prices.
The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears over the condition of the economy.
The Shanghai Composite rallied more than 5% on Thursday to reclaim the critical 3,000-level, after crashing 23% over the past five sessions, as sentiment improved after China's latest easing moves.
The upbeat sentiment carried over to European markets, where Germany's DAX rallied 3%, while France’s CAC 40 and London's FTSE 100 were both up around 2.5%.
Elsewhere, U.S. oil futures reclaimed the key $40-level on Thursday, as appetite for riskier assets was boosted amid a global stock market rally.