U.S. stock futures saw slight gains on Thursday, despite a hotter-than-expected inflation report for January that dashed hopes of an interest rate cut from the Federal Reserve in the near term.
- Dow Jones futures (YM=F) were up 0.1%
- Nasdaq futures (NQ=F) rose 0.2%
- S&P 500 futures (ES=F) also gained 0.2%
The inflation data showed consumer prices rose more than anticipated, with inflation hovering around 3%. This suggests the Federal Reserve is unlikely to ease interest rates soon, as the central bank remains focused on bringing inflation closer to its target of 2%.
In corporate news, Reddit (RDDT) stock slid in after-hours trading following disappointing earnings, particularly missing expectations for user growth. In contrast, Robinhood (HOOD) saw a strong rally after reporting fourth-quarter profits that exceeded analyst expectations.
Thursday will bring another key inflation reading, with the Producer Price Index (PPI) set for release at 8:30 a.m. ET. Analysts expect a 0.3% increase in the PPI, which tracks price changes at the wholesale level.
Investors are also awaiting earnings reports from Airbnb (ABNB), Roku (ROKU), and Coinbase (COIN), which could provide further insight into the health of the economy and individual sectors.
Meanwhile, President Donald Trump’s trade war continues to simmer, with the potential for tit-for-tat tariffs looming. Trump has indicated that reciprocal duties could be announced by the end of the week, keeping market participants on edge regarding the broader economic impact.
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Dollar Strengthens as Trump Announces Tariffs, Pressuring Global Currencies
Dow Jones Faces Setback Amid Soft Labor Data and Renewed Trade War Tensions
