Global stock markets advanced on Thursday despite light trading volumes due to widespread May Day holidays across Europe and Asia. The optimism was driven largely by gains in U.S. futures, reflecting a cautiously positive investor outlook.

The S&P 500 futures jumped 1.5%, while Dow Jones futures rose 0.7%, signaling a strong start to the U.S. trading day. Meanwhile, Britain’s FTSE 100 edged slightly higher, up less than 0.1% to 8,496.53.

In Asia, Japan’s Nikkei 225 closed up 1.1% at 36,452.30. The Bank of Japan held interest rates steady and sharply downgraded its economic growth forecast for the fiscal year ending March 2026—from 1.1% to just 0.5%—citing global policy uncertainty and weak domestic demand.

“The BOJ is likely to pause further actions as it evaluates the ripple effects of global trade disruptions,” noted Shigeto Nagai of Oxford Economics.

Market sentiment remains weighed down by ongoing concerns about U.S. economic stability amid persistent trade tensions. President Trump’s unpredictable tariff policy has contributed to market volatility and fears of a potential recession.

Investors are also bracing for a key U.S. jobs report due Friday, expected to provide deeper insight into the health of the labor market. With looming threats of stagflation—sluggish growth combined with persistent inflation—the Federal Reserve faces limited options to stimulate the economy without exacerbating existing problems.

In currency trading, the U.S. dollar strengthened to 144.19 yen from 143.06 yen, while the euro held steady at $1.1329. Energy markets retreated, with U.S. crude falling $1.07 to $57.14 per barrel and Brent crude slipping $1.00 to $60.06.