Stock Futures Decline as Investors Brace for Inflation Ahead of Key Report: Live Updates
On Thursday morning, stock futures experienced a downturn on Wall Street as anticipation mounted for a crucial second inflation report.
Futures linked to the Dow Jones Industrial Average dipped by 97 points, marking a 0.25% decrease. Similarly, S&P 500 futures saw a decline of 0.2%, mirroring the trend in Nasdaq-100 futures.
At 8:30 a.m. ET, the March reading of the producer price index is scheduled for release. According to economists surveyed by Dow Jones, it is anticipated that wholesale prices will have risen by 0.3% in March, with a growth of 0.2% when excluding food and energy.
This report follows a turbulent day for Wall Street, marked by a sell-off on Wednesday as investors reacted to a notable increase in the March consumer price index. This surge raised concerns that the Federal Reserve might scale back on expected rate cuts. Additionally, minutes from the Fed’s previous month’s meeting indicated that certain officials remain apprehensive about the trajectory of inflation toward the central bank’s 2% target.
The unexpected surge in consumer prices, with a 0.4% growth in March and a 3.5% increase from a year earlier, led Goldman Sachs chief economist Jan Hatzius to revise the firm’s forecast from three rate cuts to two in 2024. He now predicts that the first rate reduction will occur in July.
Hatzius expressed optimism regarding the labor market’s rebalancing and its potential to alleviate inflation over time. However, he noted a shift in the Fed’s timing adjustments, emphasizing a greater reliance on month-on-month inflation data, which has been consistently below expectations.
During the previous session, the Dow Jones Industrial Average experienced a decline of 1.1%, while the S&P 500 dropped by 0.95%. Similarly, the Nasdaq Composite saw a decrease of 0.84%.
The ongoing earnings season progresses on Thursday, with CarMax, Fastenal, and Constellation Brands scheduled to report their results before the market opens. The unofficial kickoff to this period will occur with earnings releases from major banks such as JPMorgan, Wells Fargo, and Citigroup on Friday.
