Stock index futures pared losses on Thursday after jobless claims unexpectedly fell last week to a near four-year low, another sign of improvement in the labor market.

Initial claims fell by 10,000 to 348,000 in the latest week. Analysts had been expecting a rise of 7,000.

S&P 500 futures dipped 3.2 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 13 points, and Nasdaq 100 futures fell 1.5 points.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)