US equity futures showed modest gains early Thursday as investors awaited crucial American jobs data, which could offer key insights into the Federal Reserve’s next moves on interest rates. The labor market data is widely anticipated to provide more clarity on whether the Fed will maintain its hawkish stance or consider easing up as economic conditions evolve.

Meanwhile, oil prices continued their upward trajectory, fueled by rising tensions in the Middle East. The ongoing conflict in the region has traders concerned about potential disruptions to oil supply, pushing prices higher.

Spirit Airlines Faces Bankruptcy Fears, JetBlue Gains Ground

Spirit Airlines experienced a dramatic plunge, with shares tumbling more than 38% after reports surfaced that the budget carrier may be considering bankruptcy. According to The Wall Street Journal, Spirit is facing financial difficulties and exploring options to navigate its mounting challenges.

This news comes just months after JetBlue was engaged in talks to merge with Spirit. Interestingly, shares of JetBlue advanced nearly 6% following the report, potentially signaling optimism about its prospects, or relief that the merger did not go through.

Rivian Stock Slumps Amid Production Troubles

Electric vehicle (EV) maker Rivian also found itself in the spotlight, but not for positive reasons. The company’s stock took a significant hit, falling 8% after cutting its annual production guidance. Rivian now expects to produce between 47,000 and 49,000 vehicles this year, a significant drop from its previous forecast of 57,000. The company cited a supply shortage as the primary cause for the production disruption, further illustrating the ongoing challenges faced by the broader EV industry in scaling operations amid supply chain bottlenecks.

CVS Health Considers Strategic Split

On a more positive note, shares of CVS Health rose 1.5% following news that the healthcare giant is considering breaking up its business. CVS is reportedly undergoing a strategic review, weighing the potential separation of its retail pharmacy and insurance units. This would mark a major shift in strategy, as CVS has long operated with a diversified model combining its retail and healthcare services. The company is facing increased pressure due to rising medical costs in its insurance division, spurring discussions about reconfiguring its business model.

Chubb Downgraded by Bank of America

Insurance provider Chubb saw its stock slip over 1% after Bank of America downgraded the company from neutral to underperform. Despite a 29% rise in its share price year-to-date, the firm noted concerns about Chubb’s slower growth relative to its peers. Investors seem to be recalibrating their expectations, as the insurance sector grapples with shifting market conditions.

As the markets await the forthcoming jobs report, all eyes will be on how these developments, alongside the broader economic landscape, impact market trends moving forward.